Penguin Random House and Simon & Schuster pull out of merger
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Paramount Global, which owns publishing house Simon & Schuster (S&S), has decided not to sell it to Penguin Random House. About this in letter S&S CEO Jonathan Karp told employees.
Penguin Random House, owned by Bertelsmann, announced about the upcoming purchase of Simon & Schuster in November 2020. Penguin Random House was willing to pay $2.2 billion for its competitor.
However, at the end of October 2022, the Federal Court of the District of Columbia satisfied lawsuit filed by the US Department of Justice against the merger of the two companies. Penguin Random House criticized this decision, calling it unpleasant for readers and authors, and announced their intention to appeal. Simon & Schuster also intended to appeal. However, in the end, Paramount, which owns the publishing house, decided to abandon the deal and will now look for other potential buyers.
Penguin Random House publishes about 25% of all paper books sold in the US, and the publisher’s revenue in 2021 was $4 billion. Simon & Schuster’s share of the US paper book market exceeds 9%, the publisher’s revenue in 2021 is close to $1 billion.
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