Big Publishing

From Publishers Weekly:

A 29.2% sales increase in adult trade titles and a gain of 11.8% in sales in the children’s/young adult segment led to a 10.3% increase in January industry sales over January 2020 for the 1,359 publishers who report results to AAP’s StatShot program.

Sales in the professional publishing category rose 8% in the month, while university press sales increased 4%. K-12 instructional materials sales inched up by 1.6%. Sales of higher educational course materials fell 2.6%, and sales in the religion segment slipped 0.5%.

Within adult trade, all print and digital formats had double-digit sales increases over January 2020. Hardcovers had the largest increase, 51.5%, followed by mass market paperback (41.1%) and trade paperback (20.7%).

The sales growth of digital audio showed no signs of slowing down, jumping 35.1%. E-book sales increased by 16% in the month.

The digital formats did well in the children’s/YA segment, with e-book sales soaring 75.2% and audio rising to 25.9%. Paperback sales rose 15.3% and hardcover sales were up 7.9%. Sales of board books fell 3.4%.

Link to the rest at Publishers Weekly

From The Guardian:

The UK competition watchdog has launched an investigation into Penguin Random House’s $2bn (£1.45bn) takeover of Simon & Schuster, a deal rivals have warned will create a “behemoth of books” with too much power in the global publishing industry.

The deal would bring together a who’s who of starry authors from Dan Brown, Hillary Clinton and Stephen King to Barack Obama, Bob Woodward and John Grisham. An equally impressive combined back catalogue spans titles and authors including Gone With the Wind, Catch-22 and the works of Ernest Hemingway.

On Monday, the Competition and Markets Authority said it was considering whether the deal, which cements PRH’s position as the world’s biggest book publisher, would result in a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.

German media group Bertelsmann triumphed in a bidding war against rivals including Rupert Murdoch’s News Corp, which owns the book publisher HarperCollins, sealing the deal less than a year after it took full control of PRH.

The News Corp chief executive, Robert Thomson, subsequently said the deal showed “anti-market logic” and would lead to an anti-competitive “behemoth of books” that would control one-third of the US book market. Bertelsmann has said the merged entity would have a US market share of less than 20%, making the deal clearly “approvable”.

. . . .

In the US, the Authors Guild and the National Writers Union, along with four other writers’ groups and the nonprofit Open Markets Institute, sent a letter in January urging the Department of Justice to block the deal.

. . . .

Concerns raised include that the scale of Bertelsmann’s book empire would be such that it could gazump rivals in deals to secure prime book rights. Shrinking the amount of competition in the market, reducing the global “big five” book publishers to four, could also mean that smaller writers will have fewer imprints to pitch to and bid for their work. On the high street, Bertelsmann will have more muscle to negotiate terms with book sellers.

“The deal will make Penguin Random House the biggest publisher by quite a long way, and it already is the biggest,” said Nicola Solomon, the chief executive of the Society of Authors. “We have nothing against the practices of either company but combined there is that potential for market dominance. Our concern is just that it isn’t in anyone’s interest to have someone in a monopoly position.”

Simon & Schuster publishes about 2,000 books a year, on top of a catalogue of 35,000 titles, and employs about 1,350 staff. Penguin Random House publishes 15,000 titles a year, and has a workforce of about 10,000 people globally.

As with many areas disrupted by the rise of Silicon Valley giants, global consolidation has been a hallmark of the industry in recent years. In the era of Amazon, which dominates ebook, audio book and print sales, as well as the growth of self-publishing, the major players have sought scale to drive cost efficiencies and profits. In an interview last year Thomas Rabe, the chief executive of Bertelsmann, said that swallowing S&S would not change the fundamental power dynamic of Amazon’s dominance of the market. “We need them more than they need us,” he said. “And the transaction doesn’t change that.”

Link to the rest at The Guardian and thanks to C.E. for the tip.

One question PG didn’t see discussed in the OP is, “Who’s smarter, the seller or the buyer?”

From The New York Times:

If you were a certain kind of distinctly Trumpy public figure — say Donald Trump Jr. or Corey Lewandowski — looking to sell a book over the last four years, there were surprisingly few options. The Big Five publishing companies in New York, and even their dedicated conservative imprints, had become squeamish about the genre known as MAGA books, with its divisive politics and relaxed approach to facts. And small conservative publishers probably couldn’t afford you.

So if, like the younger Mr. Trump in 2018, you found yourself rejected by most New York publishers, there was one last stop: a corner cubicle in the fifth-floor offices of the Hachette Book Group in Midtown Manhattan. There, Kate Hartson, the editorial director of the conservative Center Street imprint, was the one mainstream editor who would buy what no one else would — and make a tidy profit for her employer.

Ms. Hartson, a fit 67-year-old who once ran a small press specializing in dogs, had all the trappings of a liberal book editor, including an apartment on the Upper East Side and a place in Hampton Bays. But she also seemed to be that rarest of figures in New York media: a true believer in Donald J. Trump, people who worked with her said. She published “Triggered” by Donald Trump Jr., Mr. Lewandowski’s “Trump: America First: The President Succeeds Against All Odds” and the work of other Trump die-hards like the Fox News host Jeanine Pirro and Newt Gingrich, the former House speaker.

But Hachette, like The New York Times and other media companies, has been torn in recent years between the politics of its staff and its historic commitment to publishing conservative speech. Its liberal proprietors, of course, always abhorred the conservative content while cashing the checks. At Hachette, this meant employees having their salaries paid by Donald Trump Jr. while objecting to publishing liberals who had fallen out of favor, like Woody Allen or J.K. Rowling.

Ms. Hartson’s list was a somewhat more direct attack on her colleagues’ politics. The last book she bought was the forthcoming “Woke Inc.: Inside Corporate America’s Social Justice Scam,” by Vivek Ramaswamy. And so last month, even as Ms. Hartson was riding high with the best-selling political book on Amazon, “Unmasked: Inside Antifa’s Radical Plan to Destroy Democracy,” Hachette fired her.

The official reasons for Ms. Hartson’s termination, two people familiar with it said, were mundane. But she told associates that she believed she’d been fired for her politics. In a Zoom meeting with employees on Jan. 26, the chief executive of Hachette Book Group, Michael Pietsch, and Daisy Hutton, the executive who oversees Center Street, didn’t mention Ms. Hartson. But they reassured employees that they had learned the lessons of the Capitol siege of Jan. 6: no hate speech, no incitement to violence, no false narratives. And they’ve separately made clear to both editors and agents that they’re shifting back toward think tank conservatives, and away from fire-breathing politicians. (Ms. Hartson didn’t respond to questions about her views and her firing.)

“The conservative movement is in a state of flux, and the next few years will be a particularly rich time for conversation about the future of conservatism in America,” Ms. Hutton, who is based in Nashville and whose background is primarily in Christian publishing, said in an email. “Center Street will continue to publish thoughtful, provocative, lively and informative books that contribute meaningfully to the shaping of that conversation.”

Hachette is hardly the only mainstream publisher steering away from MAGA books. Simon & Schuster invoked its “morals” clause to cancel the publication of a book by Senator Josh Hawley, Republican of Missouri, after he objected to the results of the November election and cheered the protests right before violence broke out. Simon & Schuster, two sources familiar with its plans said, will also stop publishing the right-wing activist Candace Owens.

Link to the rest at The New York Times

It appears to PG that Hachette and other members of Big Publishing have decided that some things are just more important than publishing books that a great many Americans enjoy buying and reading.

“Not our sort of customers, you know.”

Large advances notwithstanding, PG suggests this is yet another shot in the arm for Amazon’s sales.

And one more reason to reopen fewer physical bookstores when the lockdowns in various locations lift enough to allow for most individuals to think about whether they want to go to a local bookstore and look at books for old times sake.

Perhaps combining bookstores with antique stores might be a good marketing move.

As PG mentioned a day or two ago, he and the French language began a difficult relationship when he was a fainéant during an introductory French class in college, but he didn’t recall that hachette was a synonym for belette.

That said, PG needs to leave off using his French language skills to trash others.

From Publishing Perspectives:

The Association of American Publishers has announced this afternoon (January 27) that its directors have reelected Wiley president and CEO Brian Napack as AAP’s chair, with Hachette Book Group CEO Michael Pietsch chosen as vice-chair.

The board’s actions coincide, of course, with a sea-change in Washington, where the AAP is seated. With the American publishing industry for the most part having weathered the coronavirus COVID-19 pandemic better than some thought it might, the coming months of political and public health challenges include uncertainty at many levels.

. . . .

“A vibrant, independent publishing industry plays an essential role in our democracy,” Napack says, “and this year, more than most, it will play critical role in the healing of our nation.

“It’s a privilege to stand shoulder-to-shoulder with AAP and its member companies to pursue our critical mission, one that enables discovery, learning, creative expression and, overall, the advancement of society worldwide.”

. . . .

“We look forward to collaborating closely with the administration in the years ahead as we work to ensure that the publishing industry continues to make major contributions to our culture and economy, and that our members can fulfill their missions, promoting literature and poetry as engines of enlightened understanding, supporting education as a proven road to prosperity, and advancing scholarship and science as means of expanding our understanding of the world around us, and effectively addressing issues ranging from the current pandemic to climate change, in the process uniting our country.”

Link to the rest at Publishing Perspectives

PG notes that Wiley is largely a scientific, technical, medical, and scholarly journals publisher, a member of a group that, per several of PG’s prior posts, is well-known for charging very high prices for journal access to the colleges/universities that comprise a significant portion of its market. Such publishers typically don’t pay anything most of the authors who write the books/articles/etc. because those authors are often working in a publish or perish environment where the publication of their works in scholarly journals is vital to their continued employment.

PG suggests there’s not much that sounds independent to him about Wiley and its counterparts. They’re part of the establishment and, arguably, part of the problem.

The new vice-chair is, of course, the head of a subsidiary of a large French holding company, headquartered in Paris, which means the US subsidiary is anything but independent.

As far as healing the nation goes, PG would not advise counting on these two for much. They’re mostly into PR speak.

PG is, of course, hiding out from Covid and hoping he doesn’t need any healing from anything in the foreseeable future.

From The New Publishing Standard:

Print? Check. Ebooks? Check. Audiobooks? Check. Podcasts? We’re getting there. Online reading? As in Wattpad? Be serious. That’s for preteen girls who don’t mind reading unedited drivel from talentless wannabe authors. There’s no money to be made here!

Well, except when there is. That $600 million South Korea’s Naver is dropping to buy Canada-based Wattpad is not loose change. This is a serious business investment few could match and even fewer would squander on a business that had no profit potential.

As for preteen girls and talentless wannabe authors… Only in the eyes of those who have never looked too loosely at what Wattpad has morphed into.

Yet the western industry coverage of the year’s biggest deal so far has been mostly little more than a press-release recital, and no coverage seems to have looked at the bigger picture unfolding.

Here’s the thing: online reading is a massive and lucrative business in Asia, but western publishers struggle with the concept. It’s not print books. It’s not imitation print books on a screen as most ebooks are. It’s not subscription, unlimited or otherwise. Nor is it the western industry’s current darling, audiobooks. It’s just… well, reading online. The thin end of a very unhealthy wedge for western publishers fixated on the analogue model that treats digital as an afterthought or, in the current pandemic era, a safety-net.

But the Naver acquisition blows out of the water the notion that online reading is not a potential revenue spinner. Dropping over a half billion bucks on a platform is something few companies could even think about, and per previous TNPS discussion about the Wattpad sale, the most likely candidates appeared to be either Amazon or Tencent.

. . . .

The combined online-reading base of Tencent (China Literature), Alibaba and other players mean the online reading market is likely substantially over a half billion.

And that’s before we start to factor in the spin-off properties and audiences.

Wattpad for example has turned a platform for adolescent girls and wannabe writers (a pretty fair description of its earliest years) into a book publishing, film and TV operation while expanding online reading into niche multi-media apps like Tap, and even having its own innovation factory, WattpadLabs.

At which point throw in Naver’s empire: Webtoon (animation) has over 72 million monthly users, mostly across Korea, Thailand, Indonesia and Japan, but with obvious synergies with Wattpad content and IPs.

Webtoon creates its own content and draws on content from professional publishers as well as offering a self-publishing platform, Webtoon Canvas, where creators can earn cash (US$) through the Webtoon Canvas Creator Rewards Programme (credits are paid through Patreon so no major issues for creators to receive payments).

. . . .

My position is that this is another seismic shift that will go largely unnoticed and unremarked for now, but will send ripples across the global publishing arena for years to come.

Because the thing with online reading is that it is potentially the emerging markets’ alternative to subscription, where a fixed monthly rate is a commitment most consumers won’t make, but where “sachet-marketing” (micro-payments in time and in line with consumption) is the norm.

Underestimate the significance of this deal at your peril. Online reading won’t challenge the western retail and subscription model any time soon, if ever, but it has, is and will open up new markets and opportunities for publishers quite unimaginable back when digital reading began to take off in the late 2000s.

Link to the rest at The New Publishing Standard

PG suggests that traditional Western publishers and technology-based information consumption live in two different galaxies, far away from one another.

One galaxy is expanding rapidly, the other is on the brink of a sudden collapse.

In PG’s highly-limited understanding of the cosmos, when a star collapses, all that remains is a black hole. He doesn’t know what happens when a whole bunch of stars in a galaxy collapse, but seems to recall that when two black holes collide, a single larger black hole is all that’s left afterwards.

PG further understand that no light is emitted from black holes. He expects that no royalty payments or rights reversions can be expected to be emitted from black holes either.

From TeleRead:

Much of the news is cheery in “COVID-19 and Book Publishing: Impacts and Insights for 2021,” a free 50-page report from three seasoned industry consultants, Cliff Guren of Syntopical, Thad McIlroy of The Future of Publishing, and Steven Sieck of SKS Advisors.

True, the coronavirus has bankrupted some brick-and-mortar stories, and libraries will have to compete at budget time with other agencies the virus is battering. But publishers themselves have fared surprisingly well.

Working at home to avoid the contagion, millions have ditched their commutes and are now ordering books online from Amazon and other big retailers. Many Americans, at least those not saddled with new childcare burdens, enjoy more reading time.

Savvy publishers also will be able to sell directly to consumers directly, including those home-schooling their children. Print on demand should make all kinds of things possible. Same for electronic books, whose September sales grew 22 percent year over year. And the “online first” publishing model may become increasingly attractive.

. . . .

The report covers plenty of territory, but one observation in particular leapt out at me—how publishers have stayed afloat partly because they are so focused on affluent consumers, who tend to be less affected by the virus than America at large.

Backing up their claims, the authors reached back to some 2015 statistics from the Bureau of Labor Statistics showing in their words that “the top 10% of earners spent nearly 8½ times more on reading than the bottom 10%. And so while the pandemic is hitting lower earners financially more heavily than the more prosperous, this is at worst a minor negative indicator for publishing’s bottom line.”

On the surface, that tidbit would seem to delight. Hooray! Publishers so far have been more virus-proof than, say, restaurants or brick-and-mortar bookstores in malls.

But the ultimate message is a downer in a certain way, and not just in regard to the threat to democracy if financial and cultural gaps grow between rich and poor Americans. Unwittingly, between the lines, the report is implying that major publishers, at least, are leaving a lot of money on the table by focusing on the well-heeled at the expense of the masses.

Ebook prices from them have been too high, as I see it, to tempt many consumers, and publishers should not take the status quo for granted or even be happy with it if they look ahead.

“Consumer discretionary spending should rise with the economy’s anticipated growth in 2021, a positive note for consumer book sales,” the report itself says while citing widely accepted forecasts of six percent for such spending as a whole. “But there are clear signs of demand elasticity in, for example, consumer willingness to add or cancel video streaming services to lower cost, and resistance to paying high prices for home rental of first-run movies; and in the high demand for library ebook lending.”

Too many publishers, in my opinion, would rather protect their infrastructure for paper books than assure their digital titles maximum distribution by pricing them reasonably. There is also the issue of editorial content of the books. Small publishers and self-publishers are dominating category fiction such as romance.

Even with that factored in, the entire publishing business is still leaving billions on the table. Household expenditures for books are just a fraction of the several thousand dollars a year that the typical American household spends on other forms of entertainment.

Such is the bad news, worsened by the virus, which if anything is exacerbating income and wealth differences. And the good news? Lots and lots of potential upside for publishers of all sizes. The industry simply needs to think more about expanding the universe of readers and less about such short-sighted strategies as overpricing ebooks and and in the future especially jacking up prices for library ebooks.

I know. Some publishers complain that library borrowing steals from retail sales. But despite the willingness of many consumers to check out books rather than buy when prices are too high, the truth is more complex.

Borrowing of library ebooks has surged during the epidemic, but print book sales have risen, too—8.2 percent in 2020. The message here is that publishers can be both pro-library and solvent. And pro-library is really pro-publisher since today’s borrower may be tomorrow’s buyer even if direct correlations may not be evident. It’s the book habit that we need to encourage among the many millions who are now spending either a pittance or nothing at all on books.

Asked for his thoughts on the demographic differences in book-buying, especially during the pandemic, Thad McIlroy emailed me: “I feel there’s a major study to be done on this issue. The book publishing industry largely sells to the same well-heeled audience, year after year. The audience increases slightly as additional literate graduates enter the reading world—then declines with the deaths of the heavy-reading seniors.

. . . .

As noted in our report, the pandemic has led to a lift in ebook sales and lending. I suspect the increases in sales and borrowing will last beyond the pandemic. Familiarity breeds contentment. And, as you note, we are all getting used to doing more and more online and on our phones. Convenience is addictive.

“With regard to libraries and discovery—I agree that libraries have an increasingly important role in driving discovery, but discovery doesn’t automatically (or uniformly) drive sales. It’s relatively easy to assess the impact of specific events (such as author readings) on sales—much harder to assess the long-term impact of library promotion and availability of a specific title on sales. The Panorama Project is working on this, but it’s going to take time and significant industry cooperation/coordination to get to authoritative results.”

Link to the rest at TeleRead

PG says (again) that when you combine too little business and marketing savvy at major publishers with an obstinate refusal to spend money to build the size of the overall market and market share on the part of the primeval management of the large international holding companies that own most of the US traditional publishing business, you’re likely to wait a long, long time for any sort of innovation in pricing, business practices, more focus on innovation in ebook marketing and sales activities, etc. to occur.

Innovation for this group usually involves long discussions about how much higher the prices for books can be increased this year.

Traditional publishing has a highly-conflicted view of libraries. They have the idea that a high percentage of borrowers would buy their books if it were unable to conveniently borrow them from a library.

Publishers don’t understand (or are unwilling to accept) that readers don’t live in an information-consumption box that only contains books (and traditionally-published books at that). Consumers can find entertainment and education from all over the place, including from online sources besides libraries.

PG spends far more time during the day reading text that comes to him via email and web browser than he does reading text that arrives on his ereader (and he’s a regular reader of books on his ereader). PG hasn’t purchased a physical book for himself in years. Ditto for Mrs. PG.

Something PG hasn’t seen discussed by traditional publishers or journalists who cover that beat is that more than a handful of avid readers of hardcopy books automatically put their physical books up for sale as used books as soon as they finish reading them. This includes readers of printed books that they purchase new from Amazon as well as readers who have purchased used books from local or online bookstores.

These types of readers want to help fund their physical book reading habit, so any amount of money they can generate from selling their once-used or many-times-used books help fund the purchase of additional books.

PG just checked on eBay and over 35 million books were for sale. All the ones he looked at were used and selling for a small fraction of their original retail price. PG includes a handful of eBay screen shots at the end of this post.

PG notes that most of the eBay screen-clips he made were sponsored posts – paid advertisements – not just a bunch of amateurs selling their books. A would-be reader could spend ten minutes and ten dollars and buy at least a couple of weeks of reading on eBay (with free shipping). And there was no mention of any sales tax the purchaser would have to pay.

Looking at the overall book market with a hard-eyed view not limited to only wealthy readers, a business-savvy publisher would sell ebooks direct to readers, keeping virtually all the money the ebooks generate for their first sale and rely on off-the-shelf copy-protection systems to discourage most purchasers from re-selling the ebooks to their friends.

Speaking of high ebook prices, this “strategy” encourages tech-savvy individuals to circumvent copy protection. If you compare the likelihood that a non-techie reader will look outside of traditional sales channels for an illicit ebook that carries a retail price of $2.99 from Amazon vs. one that carries a $10.99 price on Amazon, more than a few people will seek a way around paying $10.99 to Amazon than will spend the time and effort to get a free or lower-priced $2.99 ebook.

(PG notes that the last eBay ad he clipped and pasted at the end of this post offered 300,000+ ebooks in PDF format with “Master Resell Rights” for 99 cents)

Low prices sell more consumer products of every kind. That’s why Amazon sells so much of everything. That’s why Walmart sells so much of everything.

That’s why higher-priced physical retailers who don’t sell primarily to rich people have closed most of their doors during Covid and are unlikely to open them after Covid goes away.

Covid has continued for long enough that, for many people, the changes involved with Covid aren’t all going to reset themselves after everyone is vaccinated.

As an example, the PG’s are likely to continue to order a lot of their groceries online, then drive to the store and have someone put their purchases in their trunk instead of wasting time pushing a cart around the store, making impulse purchases (more of a problem for PG than Mrs. PG), waiting in line to check out, then wheeling a filled grocery cart across a large parking lot, then putting their grocery items into their trunk and driving home to unload the groceries once more. Since PG does most of the grocery lugging, he’s going to opt to touch his purchases once when he takes the groceries out of the trunk to carry them into the house.

If PG had used the grocery pickup service for a couple of weeks then the Covid lockdown had ended, he would be likely to go back to his normal pre-Covid practice of going into the grocery store to shop. After several months of grocery store pickup experience, the pickup service has become his habit.

There are a lot of readers who have purchased physical books in the past who have experimented with ebooks or have learned that they get a much wider selection of physical books from Amazon at lower prices if they stay in their home rather than follow their habitual behavior of making a mental note to stop by the bookstore the next time they go out shopping.

PG predicts that this going-on-line-to-find-and-purchase-books habit is not going to change after the Covid storm passes. It’s going to be a life-long habit for enough people to change traditional bookselling forever.

Here are some of the eBay used books listings PG found in less than ten minutes:

From Publishers Weekly:

In December, Verso Books’ management voluntarily recognized our union. After several years of informally organizing our workplace and seeing some successes, we realized that to make significant progress we would need formal representation, so we joined the Washington-Baltimore NewsGuild. We have identified our core issues and demands—closing the gender pay gap, job security, increasing staff leverage, and raising wages across the board—and intend to make them cornerstones of our collective bargaining process in 2021.

What we realized through talking to fellow book workers during this organizing process is that our situation is far from unique. In recent years, and in 2020 in particular, a series of decisions has underscored publishing’s already-shaky foundation and its wresting of power from workers into the hands of—quite literally—a powerful few. Here’s why we think other publishing workers should consider unionizing their workplaces, too.

Unions are an essential safeguard in an industry that benefits from workers being divided, and a union can help raise wages for its members as well as for nonmembers. With even a few medium to large publishers unionized, we could see salaries across the industry rise significantly as a result of competition to match union wages.

We believe we’re already seeing inspiring movement in this regard: after several publishers raised entry-level wages this year as a result of increased pressure to pay workers a living wage, the HarperCollins union is using this leverage to push for across-the-board raises for everyone in its bargaining unit as part of ongoing negotiations.

Furthermore, the publishing industry will only be able to recruit and retain workers from different backgrounds if it starts to offer living, sustainable wages to all employees. As we see it, there’s no future for publishing without a workforce that reflects the demographics of its readership, and unions are the best guarantor of the fair pay, dignified labor conditions, and meaningful opportunities for growth that can bring true diversity. If stipulated in a collective bargaining agreement (CBA), unions can help create leaders across various levels of a house by requiring employers to promote from within and abide by diversity clauses, producing opportunities for junior employees—a small but still significant percentage of whom are people of color—to actively shape the future of these companies.

For workers at small publishers, Penguin Random House’s recent announcement that it intends to buy Simon & Schuster for a whopping $2.175 billion was not a surprise. And while unions can’t prevent mergers, they can help with job security in the event of corporate restructuring or economic downturns like the one we saw in 2020. Introducing protective language into CBAs—such as seniority clauses, recall provisions, or even measures that would bar layoffs in lieu of other payroll-meeting measures—can provide a modicum of safety amid much uncertainty.

Publishing is not immune from the abuses that sometimes emerge when managers enjoy unaccountable power; it is not uncommon for junior workers to suffer verbal and sexual harassment by managers on and off the job. Unions can introduce meaningful measures to help workers resist abuse and, if necessary, fight back. In short, they reduce the authority of managers by tipping the balance of power in the workplace. And when workers have more power, we can act more boldly in everything we do.

Link to the rest at Publishers Weekly

PG is quite skeptical about whether unionizing publishers will benefit authors. He suspects not.

From Writer Beware:

The New York Times has published the story of a strange international phishing scam: unknown actors targeting traditionally-published writers, posing as their agents or editors to obtain copies of their unpublished manuscripts.

Earlier this month, the book industry website Publishers Marketplace announced that Little, Brown would be publishing “Re-Entry,” a novel by James Hannaham about a transgender woman paroled from a men’s prison. The book would be edited by Ben George.

Two days later, Mr. Hannaham got an email from Mr. George, asking him to send the latest draft of his manuscript. The email came to an address on Mr. Hannaham’s website that he rarely uses, so he opened up his usual account, attached the document, typed in Mr. George’s email address and a little note, and hit send.

“Then Ben called me,” Mr. Hannaham said, “to say, ‘That wasn’t me.’”

Mr. Hannaham was just one of countless targets in a mysterious international phishing scam that has been tricking writers, editors, agents and anyone in their orbit into sharing unpublished book manuscripts. It isn’t clear who the thief or thieves are, or even how they might profit from the scheme. High-profile authors like Margaret Atwood and Ian McEwan have been targeted, along with celebrities like Ethan Hawke. But short story collections and works by little-known debut writers have been attacked as well, even though they would have no obvious value on the black market.

The phisher, or phishers, employ clever tactics like transposing letters in official-looking email addresses (like “penguinrandornhouse.com” instead of “penguinrandomhouse.com”) and masking the addresses so they only show when the recipient hits “Reply”. They know how publishing works and appear to have access to inside information, utilizing not just public sources like acquisition announcements in trade publications, but details that are harder to uncover: writers’ email addresses, their relationships with agents and editors, delivery and deadline dates, even details of the manuscripts themselves. 
And they are ramping up their operations. According to the Times, the scam began appearing “at least” three years ago, but in the past year “the volume of these emails has exploded in the United States.”
So what’s the endgame? Publishing people are stumped. Manuscripts by high-profile authors have been targeted, but also less obviously commercial works: debut novels by unknowns, short story collections, experimental fiction. The manuscripts don’t wind up on the black market, as far as anyone can tell, and don’t seem to be published online. There have been no ransom demands or other attempts at monetization. 

One of the leading theories in the publishing world, which is rife with speculation over the thefts, is that they are the work of someone in the literary scouting community. Scouts arrange for the sale of book rights to international publishers as well as to film and television producers, and what their clients pay for is early access to information — so an unedited manuscript, for example, would have value to them.

I heard about the scam a couple of months ago, from an author who was targeted after their forthcoming book was announced on Publishers Marketplace. What they reported to me tracks with the information above, including the credible approach by the writer’s own editor or agent (complete with authentic-looking email signature), a credible excuse for why they wanted the writer to send the manuscript again, and the altered sending address. The writer did send the ms., and didn’t discover until they talked to their agent that they’d been tricked.

Link to the rest at Writer Beware

From Publishing Perspectives:

With the clock ticking down on a year that’s seemed interminable at many points, many in the United States’ publishing industry have been cheered by today’s news (December 18) that Cindy Spiegel and Julie Grau are back as Spiegel & Grau.

In social channels, you can feel the smiles as the news gets around among a quarter-century’s fans of their work.

Grau and Spiegel’s work in the past has included:

• Just Mercy by Bryan Stevenson
• Between the World and Me by Ta-Nehisi Coates
• Orange Is the New Black by Piper  Kerman
• Born a Crime by Trevor Noah
• 21 Questions for the 21st Century by  Yuval Noah Harari
• Women and Money by Suze Orman
• Nothing to Envy by Barbara Demick

When this reporter—then at CNN—first spoke with Grau in her office, she was talking about editing Kurt Cobain’s Journals, which would be published in November 2003, less than a year before Cobain’s suicide. At that point, the duo was at Penguin Group’s Riverhead Books (founded by Susan Petersen Kennedy) and there were enough photos of Suze Orman around to make visitors leave deeply concerned about their finances.

Two years after our interview, it was announced that Grau and Spiegel were moving to Doubleday because, as Spiegel told The New York Times’ Edward Wyatt in 2005, “We love running Riverhead, but we know how to run Riverhead. It was time for us to see if we can start something like this on our own.” That “something like this” would become Penguin Random House’s imprint Spiegel & Grau—which was closed by PRH in 2019.

And now, Grau and Spiegel are “starting something like this on our own”—again—in reviving Spiegel & Grau as an independent press founded on their 25 years of experience working together.

The new company, according to its media messaging, will “keep our list,” says Grau, “to no more  than 20 books a year. We’ll be able to devote meaningful editorial attention and care to each title, and, with our team of experts, provide writers with coordinated support and integrated opportunities from the very beginning of the publishing process.”

That great sighing sound you just heard is from authors reading about a house designed to cap its own output for maximum focus and support. And in her astute coverage today at The New York Times, Alexandra Alter writes: “The resurrection of Spiegel & Grau comes at a moment of growing consolidation and homogenization in the publishing industry.

“After a wave of mergers in the last decade, the biggest houses are increasingly dependent on blockbuster titles and often plow more of their marketing and publicity budgets into books and authors with built-in audiences. Some in the industry worry that there are dwindling opportunities for new writers and that debut and midlist authors may get passed over.”

Noting that the move by PRH to acquire Simon & Schuster is doing nothing to quell such concerns about consolidation, Alter adds, “In a literary landscape dominated by the biggest players, Spiegel and Grau are among a handful of well-known editors who are rejecting the corporate publishing model and instead starting their own companies.”

Link to the rest at Publishing Perspectives

PG instinctively cheers on underdogs in almost every field (his undergraduate education was at an institution whose football team likely had a higher average IQ than many of its competitors, but was substantially slower and smaller than those same competitors with predictable results).

Unless Ms. Spiegel and Ms. Grau are going to substantially change the business model that has characterized New York publishing for their entire business careers, he has doubts that their new venture will be highly successful.

In PG’s oft-repeated opinion, the fundamental problem with the traditional publishing model is that, regardless of whether it operates with a corporate or personal touch, it has been overtaken and made obsolete by the Amazon model and indie authors who run their own show.

From The Los Angeles Review of Books;

CAROLINE CALLOWAY’S CAREER so far has been indicative of many publishing trends. With help from her parents, she paid to develop her craft as a writer, studying at NYU and then art history at Cambridge. She started building her online presence by purchasing an initial bank of Instagram followers. From there she earned a large audience (some 684,000 followers at present), using the platform as an outlet for a significant quantity of self-published writing in the form of relatively lengthy, witty, discursive photo captions. With her followers in place, she was then able to secure an agent and a book deal with Flatiron Books, receiving a reputed $375,000 advance for a memoir. After failing to deliver the manuscript, she is now self-publishing the book under the title Scammer; the release date keeps getting pushed back. In addition to Instagram, she is on Twitter and Patreon, where she has offered her “closest friends,” at $100 per month subscription, a private conversation; and until just a few days ago she was producing literary-themed erotica for subscribers on OnlyFans, a self-described adult entertainment site. She sold her content as “softcore cosplay of hardcore literary heroines,” and added: “you’re cultured as f*** if you subscribe.” Some might call this an “aesthetic of bookishness.”

During her creative writing training at NYU, where she worked with David Lipsky, she met another talented young writer, Natalie Beach. In 2019, Beach chronicled their difficult friendship in an exposé that reveals how susceptible she was to Calloway exploiting her. As Calloway was breaking into Instagram, the friends traveled together in Sicily, where they took glamorous travel shots — mostly of Calloway — and worked together to write the captions and stitch together the overall narrative that made up the account Calloway named #Adventuregrams. Beach reports to have enjoyed the idea that she was participating in making an important cultural artifact, feeling close to beauty and greatness that she could not hope to touch on her own. She writes of those initial Instagram posts, “I began to believe that what we were making mattered to my career (for the first time I was being paid to write) and to our readers around the world. It was 2013, and the internet felt like the future of writing, at least for girls.” She continues:

I believed Caroline and I were busting open the form of nonfiction. Instagram is memoir in real time. It’s memoir without the act of remembering. It’s collapsing the distance between writer and reader and critic, which is why it’s true feminist storytelling, I’d argue to Caroline, trying to convince her that a white girl learning to believe in herself could be the height of radicalism (convenient, as I too was a white girl learning to believe in herself).

When their time in Europe was over, Beach used this experience in her effort to secure work: “I placed #Adventuregrams at the top of my résumé, describing myself as an editor, or if the listing called for it, the personal assistant to Ms. Calloway.” Meanwhile Calloway enrolled at Cambridge and moved to England, where she continued to grow her fan base, now branding herself as the beautiful young American abroad. The friendship strained when Calloway tried to underpay Beach to manage her apartment as an Airbnb rental. After failing to secure anything meaningfully better, Beach agreed to work with Calloway again, this time as an editor for her book manuscript, expecting 35 percent of any profits. She ended up being more of a ghostwriter. “The Caroline character we created together was a fantastic YA protagonist,” Beach reports: “she loved and was loved, looked good crying, stomped around an idealized New York in her ‘I-deserve-to-be-here boots.’” When Calloway’s agent praised the proposal, for a memoir “of a life that wasn’t mine, adapted from Instagram captions,” Beach could not help but feel proud.

For a time, then, “Caroline Calloway” was not a solo act but rather a co-production, as Beach was a key writer of Calloway’s content. That Calloway did not properly credit her work is worth noting. 

. . . .

Calloway in fact sits at an important crossroads: between the self-branding social media influencer economy and an evolving book publishing world. Calloway told Beach that “she took a series of meetings with literary professionals who informed her that no one would buy a memoir from a girl with no claim to fame and no fan base.” She was probably right: it increases your chances of getting a book contract if you are already famous on the internet. We know that the mainstream industry would rather not take risks on books that won’t sell. If they are going to offer advances to secure potentially hot titles, why wouldn’t they want to acquire books that come with a pre-made audience?

Long before COVID-19 hit, bookstore sales of literature have been trending downward; big chains have been closing branches. Advances have been shrinking. It has become harder to make a living as a writer. Marketing resources are dedicated to a dwindling crop of stars. Narratives about publishing’s yesteryear tend to be a bit pastoral, but there are truths to be gleaned from this lore. It was once more possible that an author could get published on the strength of their work — perhaps the editor even came upon it in the slush pile, and recognized a raw talent and so undertook to cultivate and mold that talent through substantive editing, followed by a marketing push trying to appeal to the right readers. No doubt on occasion this kind of gamble is still possible. But the best way to arrive at an editor’s door is with an army of social media followers already in place, or even better with a following and a viral story that will be spun out into the manuscript. A prospective publisher will want you to produce a book consistent with your brand, and they will want you to use the social media following that you already have in order to maximize the work’s sales. Taylor Swift put it as well as anybody: these days artists get record deals because they have fans, not the other way around.

. . . .

Self-publishing is one of the book industry’s gig economies, as individuals seeking to earn must increasingly be “exposed more directly to external markets” rather than working with traditional firms. There is no value added from an official editor, only behind-the-scenes help from whoever you hire temporarily or convince to work for you for free. There is no advance, and no marketing budget except what you can front yourself. This is not an easy way to make money. Many more authors earn a pittance doing this work than make a livable wage. To up your chances at success, if you have the money or social power you can get a ghostwriter or a freelance editor to work with you behind the scenes, as well as an expert in market share optimization. You need the resources to do this; many people are excluded from even trying. Calloway has been fortunate in this respect. Still, having come to book publishing with a marketable brand, she has to do the daily work of maintaining it. Even if her book is never published, that failure is content for her social media platforms, where one primary source of her self-branding activity is the idea that she’s an inveterate con artist who is just fooling around. Her book is called Scammer for a reason.

Link to the rest at The Los Angeles Review of Books

PG suggests the OP demonstrates how intellectually shallow traditional publishing has become. If Instagram followers are the target market for a book, how much more lighter-than-air can an industry become?

And, of course, self-published authors all belong in the same down-market bucket.

From Publishers Weekly:

U.S. book publishing’s biggest trade show is being “retired,” show organizer ReedPop announced today. BookExpo, along with BookCon and Unbound, will not be held in 2021 after being canceled in 2020 due to the pandemic.

ReedPop, the pop culture event–focused subdivision of Reed Exhibitions, said that, given the “continued uncertainty surrounding in-person events at this time,” the company has decided “that the best way forward is to retire the current iteration of events as they explore new ways to meet the community’s needs through a fusion of in-person and virtual events.”

In order to try to hold the event earlier this year, Reed moved the date from its usual spot at New York City’s Javits Center in late May to late July, but as the coronavirus continued to make larger meetings impossible, Reed cancelled the live conference and held six days of free virtual programming from May 26-31, the original dates of BookExpo and BookCon.

Event director Jenny Martin said that ReedPop is talking to publishers, booksellers, and other partners to investigate how to rebuild the events.

“The pandemic arrived at a time in the life cycle of BookExpo and BookCon where we were already examining the restructure of our events to best meet our community’s needs,” Martin said in a statement. “This has led us to make the difficult decision to retire the events in their current formats, as we take the necessary time to evaluate the best way to move forward and rebuild our events that will better serve the industry and reach more people than we were able to before. We remain committed to serving the book community and look forward to sharing more information in the future.”

. . . .

Reed Exhibitions’ convention business has been hammered by Covid-19. Through the first nine months of 2020, revenue was down 70%.

Link to the rest at Publishers Weekly

PG suggests this represents a sea change.

Big industry conventions, often referred to as “trade shows” in the United States, can be serious money-makers for those who sponsor and organize these events.

A business like Reed is retained by an association of businesses or professionals (The American Bar Association is one with which PG is familiar).

Dates and locations for large trade shows are usually established for several years into the future. In the US, New York and Chicago are major convention destinations due to good national and international transportation infrastructure, lots of hotels and restaurants, a variety of large and medium-sized spaces that will accommodate the number of attendees, exhibitors, etc.

Depending on the size of the convention and what the market will bear for registration fees for attendees and exhibitor’s fees, money may flow from the from the company, like Reed, that actually makes the trade show happen to the nominal sponsor of the show, e.g., The American Bar Association, a group of business associations involved in manufacturing and selling heavy construction equipment, parts, supplies, etc. (CONEXPO), The Consumer Electronics Show for technology products, etc., etc., etc.

In other cases, the organization sponsoring the show won’t receive much money or any money from a company like Reed, but will benefit from member dues from existing and new members which a successful conference generates.

There is often an educational component to a trade show – “Diabetes Self-Management Education and Support”, “Sexual Harassment in the Workplace”, “Cybersecurity Best Practices in Elections”, etc., etc., etc.

PG has gone on too long. In short, the overall business of putting on trade shows is a large one and Reed is one of the major players in that business. Building interest and attendance in a trade show usually requires at least several years of hard work, promotion, etc., on the part of those involved in facilitating the show.

Reed’s seeming permanent abandonment of BookExpo and BookCon is communicating Reed’s assessment of the future of traditional publishing as a major industry.

From Allison Hill, CEO of The American Booksellers Association:

On November 17, I sent a letter to the Honorable Joseph Simons, chair of the Federal Trade Commission, to express ABA’s concern about the antitrust implications of a potential Simon & Schuster sale to Ingram, Amazon, or any of the “Big 5” publishers. I explained that the consolidation of publishing that this sale could represent threatens to undermine competition in the book industry, harm the interests of American consumers, and put bookstores and authors at risk.

The announcement today that Penguin Random House, the biggest of the “Big 5” publishers, is buying Simon & Schuster is alarming. As the dominant player in the publishing industry, PRH’s purchase of another “Big 5” publisher, further reducing the market to the “Big 4,” will mean too much power over authors and readers in the hands of a single corporation.

ABA will be calling on the Justice Department to challenge this deal and to ensure that no further consolidation of power be allowed in the U.S. book publishing industry.

Similarly, Open Markets Institute Executive Director Barry Lynn issued a statement following the announcement of the potential sale of S&S to PRH.

“Bertelsmann’s plan to take control of Simon & Schuster poses multiple dangers to American democracy and to the interests of America’s authors and readers. By bringing three of the big six publishers under one roof, the deal will concentrate vastly too much power over the U.S. book market in the hands of a single, foreign-owned corporation. The deal will make it harder for authors and editors to attract the support they need to research, write, and prepare the sorts of books Americans need to address the many serious political and economic crises we now face. It will also threaten the ability of independent booksellers — who are already reeling from the COVID-19 pandemic and other pressures — to stay in business,” said Lynn.

“Antitrust enforcers should block this deal. There’s ample evidence that concentration in the book industry is already harming readers and authors. Allowing more consolidation among the big publishers will further reduce the range of books and ideas that find their way into print and into the hands of readers,” said Stacy Mitchell, co-director of the Institute for Local Self-Reliance. “There is a growing consensus among the public and lawmakers that concentrated economic power is a serious threat to the nation’s well-being and that our antitrust laws must be strongly enforced. This proposed merger will be a test of whether the antitrust agencies have gotten that message.”

Link to the rest at The American Booksellers Association

PG received an “A” in an antitrust law during law school. Since then, he has not spent a great deal of time thinking about the topic.

PG does remember that the United States Department of Justice can take steps to stop or delay the sale of Simon & Schuster by ViacomCBS to Bertelsmann. If Justice takes some of the more extreme steps available to it, there’s a good chance of a long court battle.

How will S&S fare during such a battle? PG won’t predict the outcome of any antitrust review or lawsuit involving the Justice Department, but, since the announcement of the deal, job pressure on S&S employees has increased substantially and the company’s well-being has already been impaired.

Will anyone want to go to work for S&S if they have any sort of reasonable alternative? Is anyone closing in on retirement age going to consider jumping ship early? Is any literary agent with a brain going to take an attractive manuscript to S&S first or second or third? Is any intelligent new or old author going to sign a publishing contract with S&S unless there is absolutely, positively not any other alternative?

S&S is not an independent entity that can have any influence on what happens next. S&S is owned entirely by ViacomCBS and the people working for S&S have no control over their future occupational destinies. Presumably, the agreement the current owner has made to sell S&S to Bertelsmann includes a provision to the effect that, “Seller will continue to operate S&S in a normal manner until transfer to Buyer is complete.”

But things are anything but normal inside of S&S.

PG is generally aware that some Buy/Sell deals in other industries have included a provision to the effect that the Seller will fire enough people to reduce payroll and associated costs by X amount prior to the conclusion of the deal so the new owner doesn’t have to look like the bad guy/gal/monolith. This may include a list of people/positions to be terminated and/or a list of people not to be fired.

One of the benefits arising from the purchase that Bertelsmann may anticipate is a savings in people costs after the acquisition. If S&S is merged with another Bertelsmann entity, the resulting organization will likely not need two CEO’s, two CFO’s, two general counsels, etc., etc.

Usually, the redundant people are those working in the company to be acquired, but that is not always a sure thing, so people at S&S and people at PRH may all be a little nervous.

A whole lot of people will be freshening up their résumés over the next few months and trying to answer questions like, “Should I pitch myself as a replacement for XX at HarperCollins?” or “Where in the world other than in New York publishing can I find someone who might want to hire somebody like me with XX years of experience at S&S?”

While PG may not like the way some large publishers treat authors, he takes no joy in seeing individuals being fired or demoted for no fault of their own. For more than a few people at S&S, an already dismal Covid Christmas is going to be anything but merry and bright.

From The Atlantic:

In 1960, Dwight Eisenhower’s attorney general, William Rogers, read the paper with alarm. He learned that Random House intended to purchase the venerable publisher Alfred A. Knopf. Rogers began making calls to prod his antitrust division into blocking the sale. In those days, monopoly loomed as a central concern of government—and a competitive book business was widely seen as essential to preserving both intellectual life and democracy. After checking with his sources, Rogers discovered that the merger would yield a company that controlled a mere 1 percent of the book market, and he let the matter drop.

Not so long ago, Democratic and Republican administrations alike wouldn’t hesitate to block a merger like the one proposed today, which intends to fold the giant publisher Simon & Schuster into the even more gigantic Penguin Random House. How big would the combined company be? By one estimate, it might publish a third of all books in the U.S. This deal is so expansive that it’s hard to find an author to write about it who isn’t somehow implicated. Based on the odds, I suppose, it’s not terribly surprising to reveal that I’m published by Penguin Random House.

. . . .

On paper, this merger is deplorable and should be blocked. As book publishing consolidates, the author tends to lose—and, therefore, so does the life of the mind. With diminished competition to sign writers, the size of advances is likely to shrink, making it harder for authors to justify the time required to produce a lengthy work. In becoming a leviathan, the business becomes ever more corporate. Publishing may lose its sense of higher purpose. The bean counters who rule over sprawling businesses will tend to treat books as just another commodity. Publishers will grow hesitant to take risks on new authors and new ideas. Like the movie industry, they will prefer sequels and established stars. What’s worse, a giant corporation starts to worry about the prospect of regulators messing with its well-being, a condition that tends to induce political caution in deciding which writers to publish.

But this merger is not the gravest danger to the publishing business. The deal is transpiring in a larger context—and that context is Amazon. The rise of Amazon accelerated the demise of Borders and the diminishment of Barnes & Noble. If it’s correct to worry about a merged company that publishes perhaps 33 percent of new books, then surely it’s correct to worry more about the fact that Amazon now sells 49 percent of them.

In the face of Amazon’s dominance, book publishers have huddled together in search of safety. Amazon’s size gives it terrifying leverage over the industry. Amazon, with its heavily visited home page, its emails to consumers, and its control of the search box on its site, has the power to make or break a title. To counter Amazon, publishers have sought to increase their bargaining power. They believe that they can match Amazon’s size only by growing their own.

When the government intervenes in a market, its actions are never neutral. One of the greatest mistakes of the Obama administration was the 2012 suit it brought against book publishers for working in concert to cut an e-book deal with Apple. The issue is not that the publishers were acting virtuously: They behaved like a cartel, which is illegal. It’s that the publishers were hardly the worst offenders. The government flogged the publishers for a technical violation of antitrust laws rather than constraining the most egregious monopolist, in spirit if not in letter.

It must not repeat the same mistake. The arrival of a new administration represents a moment to finally address Amazon’s lock on the book business; it’s a moment to focus on the core of the problem. Yes, publishers are oligopolistic and hardly sympathetic, but their continued health is essential to the survival of the book business, and thus the intellectual life of this country. If the government constrains publishers without constraining Amazon, then the government will merely accelerate the accumulation of untenable power in one single company.

Link to the rest at The Atlantic and thanks to DM for the tip

PG will limit himself to a short rant.

The attempt of all but one of the largest publishers in the United States to combine with Apple in order to take down Amazon’s books business was comically inept and stupid, a black-letter violation of US antitrust law. Once outside attorneys were hired (and presumably told their clients they would lose if they tried to fight the charges), each of the publishers promptly caved, plead guilty to antitrust charges and received punishment for their misdeeds.

Apple fought the antitrust charges and lost at every level from trial to the US Supreme Court. Under US law, you can’t lose in any more places than those.

The OP includes the following:

On paper, this merger is deplorable and should be blocked. As book publishing consolidates, the author tends to lose—and, therefore, so does the life of the mind. With diminished competition to sign writers, the size of advances is likely to shrink, making it harder for authors to justify the time required to produce a lengthy work. In becoming a leviathan, the business becomes ever more corporate. Publishing may lose its sense of higher purpose.

PG agrees that consolidation is a lose-lose situation for the large majority of traditionally-published authors. James Patterson will survive. JK will be OK.

Concerning the diminishment of “the life of the mind,” and “Publishing may lose its sense of higher purpose,” if you listen carefully, you may hear PG guffawing.

When a publisher is owned by a large international conglomerate, its sense of higher purpose is focused on what the big boys higher up the ladder (and they are mostly boys in this case) will think in Gütersloh, the 16th arrondissement of Paris, Gaensheidestrasse 26 Stuttgart, and wherever Rupert Murdoch happens to be at any given moment.

The OP also includes:

Yes, publishers are oligopolistic and hardly sympathetic, but their continued health is essential to the survival of the book business, and thus the intellectual life of this country.

PG says, “Yes, they’re oligopolistic and not the least sympathetic and a lot of other nasty things, but no, they’re not essential for anything. They are anachronistic tools that have lost their utility. Edsels.

“In the early to middle part of the last century, traditional publishers did make significant contributions to the intellectual life of the United States, but they stopped doing that quite a long time ago. This stoppage began with the arrival of corporate drones and poseurs in high positions and has only gotten worse over time.”

End of rant. PG feels much better now.

From The Wall Street Journal:

ViacomCBS Inc. is selling book publisher Simon & Schuster to German media giant Bertelsmann SE for almost $2.18 billion, ViacomCBS said Wednesday, in a deal that would create a publishing behemoth accounting for about a third of all books sold in the U.S.

The transaction would put the publishers of some of the world’s bestselling authors including Stephen King, Bob Woodward, Dan Brown and John Grisham under the same corporate umbrella. Bertelsmann SE’s Penguin Random House already is the U.S.’s largest publisher by books sold, while Simon & Schuster is the third largest, behind News Corp’s HarperCollins Publishers.

ViacomCBS put Simon & Schuster up for sale in March, saying it would use the cash proceeds to further invest in its streaming-video efforts.

. . . .

Markus Dohle, chief executive of Penguin Random House, said the deal shouldn’t raise competition concerns. “If you look at the book market, it is unconcentrated,” he said, adding that over the past decade many small new publishers emerged. “There have been a lot of new successful entrants in the market.”

Robert Thomson, chief executive of News Corp, which owns HarperCollins Publishers, said the deal would harm distributors, retailers, authors and readers. “There is clearly no market logic to a bid of that size—only anti-market logic,” he said in a statement. “Bertelsmann is not just buying a book publisher, but buying market dominance as a book behemoth.” News Corp also owns The Wall Street Journal.

. . . .

Including Simon & Schuster, that U.S. market share would rise to about 34%. HarperCollins Publishers, the second largest publisher by unit sales, accounted for about 11% of print books sold in the U.S. during the same period.

Richard Pine, a well-known New York literary agent, said he is concerned the creation of such a large publishing house would “lead to an unhealthy obsession with publishing mega bestsellers.”

“It’s like baseball, you need the minor leagues,” Mr. Pine said. “Authors need to be nurtured. If you have a system of one book and done when the magic didn’t happen, then those writers will be left behind.”

Lorraine Shanley, president of the industry consultants Market Partners International Inc., said adding Simon & Schuster to Penguin Random House’s portfolio “would make it increasingly difficult to compete, not just for the other big publishers but for the smaller publishers. Penguin Random House is also a major distributor, as is Simon & Schuster. Between the two they’d have a very large segment of the market when it comes to distribution.”

Link to the rest at The Wall Street Journal (PG apologizes for the paywall, but hasn’t figured out a way around it.)

From Publishing Perspectives:

In news just released this morning (November 25) from Gütersloh and New York City, Bertelsmann, the parent company of Penguin Random House (PRH)—already the world’s largest publisher—has announced that PRH intends to purchase ViacomCBS’ Simon & Schuster for US$2.175 billion.

Of course, industry response will quickly include speculation about how regulators will look at a question of the largest Big Five publishers buying another Big Five house.

Among write-ups in the overnight drumbeat before the announcement, Benjamin Mullin and Jeffrey A. Trachtenburg at the Wall Street Journal wrote, “The deal could draw attention from the US Justice Department, [according to] David Meyer, a Washington antitrust attorney who served at the Justice Department as a deputy assistant attorney general under President George W. Bush. ‘Their combined share would be sufficient to motivate a close look at the transaction,’ he said.”

This echoes comments from News Corp CEO Robert Thomson who, at his stockholders’ annual meeting on November 18, said, “I would make one observation about Simon & Schuster. It will clearly be a serious antitrust issue if Bertelsmann acquires Simon & Schuster. However cute and clever the structure, if Bertelsmann is their beneficiary, it will be a book behemoth. And this will certainly be a profound antitrust issue for the entire book industry and, no doubt, for authors around the world.”

. . . .

Jonathan Karp, president and CEO of Simon & Schuster says, in a message to his staff members just provided to Publishing Perspectives, “We expect the transaction will likely close in the second half of 2021 at the earliest, subject to customary closing conditions, including regulatory approval.

“I understand that many of you will have questions about how this transition to new ownership will affect your work, and your benefits. I assure you that as this process unfolds we will share information with you, but understand that this will be a long process.

“Expect no sudden changes beyond the normal decisions we make in our regular course of business.”

Link to the rest at Publishing Perspectives

From The New York Times:

Rupert Murdoch’s News Corp is making a play for Simon & Schuster, the venerable home to best-selling authors like Stephen King and Hillary Clinton that raised a ruckus this year after releasing a string of hit titles critical of President Trump.

The powerhouse publisher was put up for sale by its owner, ViacomCBS, in March, and the company has since fielded more than half a dozen inquiries, according to three people familiar with the process who declined to be named because the matter remains confidential.

In addition to News Corp, which already owns HarperCollins, a leading bidder is Penguin Random House, according to the people. Penguin Random House, the largest book publisher in the United States, is owned by the German media giant Bertelsmann. The French firm Vivendi, a minority owner of Hachette through the publisher Lagardère, has also made a bid.

. . . .

Publishing has become a winner-takes-all business, a circumstance brought on by Amazon’s aggressive pricing, and now a publisher needs size to survive. Tent-pole titles can better offset losses from weaker books. A bigger inventory can generate more data on the habits and interests of book buyers.

Those dynamics underpin the wave of consolidation that has swept the business in the last decade. Penguin and Random House merged, Hachette Book Group acquired Perseus Books, and News Corp bought the romance publisher Harlequin.

. . . .

Should a major publisher win the auction, Simon & Schuster is likely to undergo staff cuts. Departments such as human resources and finance are often slimmed down after a big merger. It is not clear how a deal might affect high-level positions at the company. Jonathan Karp, who was named Simon & Schuster’s chief executive this year after the sudden death of Carolyn Reidy, could be relegated to a lower role or be forced out. Not long after he took over, Mr. Karp named Dana Canedy, a former journalist and administrator of the Pulitzer Prizes, as publisher of its namesake imprint, putting a Black woman in charge of one of the biggest publishing houses.

. . . .

Any merger agreement would also have to undergo regulatory scrutiny. A combination with either Penguin Random House or HarperCollins, the two largest book publishers in the country, could raise questions in Washington. Penguin Random House’s sales exceeded $4 billion last year. Annual sales at HarperCollins, which reports its fiscal year at the end of June, were about $1.7 billion.

Link to the rest at The New York Times

From Publishers Weekly:

Elisabeth Sifton, who edited three of my books and died a year ago, used to put a big X in the margin whenever I mentioned a book that a writer had published. “Writers don’t publish books!” she’d say. “Publishers publish books.” I would dutifully change the wording, but I have to confess that I didn’t understand exactly what she meant—as, indeed, most authors don’t understand what publishers do, other than give them material to complain about.

Well, now I know. Five years ago, with a small group of colleagues, I started a publishing enterprise called Columbia Global Reports. We bring out novella-length works of serious nonfiction—26 thus far—on a wide variety of topics. We began with a charge, and financial support, from Columbia University’s president, Lee Bollinger, who was concerned about the severe contraction of the American press at a time when the immediacy of large international challenges was increasing. Our books are paperbacks, attractively designed and produced in a uniform format, usually based on original on-site reporting that we pay for rather than asking our authors to cover expenses out of their advances.

Doing this work has given me a view of publishing from the other side—the publishers’ side—even as I have continued to write books of my own for other publishers. What is it that publishers know, and do, that writers don’t fully grasp? I can answer that, at least to some extent.

A quick word, though, from where authors are coming from. Authors are like actors, perpetually aware that many more people want to do what we do than the world has room for. Editors and publishers have jobs. We don’t. We feel our status to be eternally provisional.

Being a publisher has changed my attitude about the writer’s place in the world, and it may be useful and encouraging to know what it is that gives a writer real value to publishers. At Columbia Global Reports, we are looking for writers who can do firsthand reporting in faraway places, make original arguments about major issues, and write prose that is a pleasure to read. That combination of skills is very, very difficult to find; anybody who has all three, or even two out of three, is a rare talent, for whose time and energy we always find ourselves competing against others who also want them.

Journalists who write books—that’s most of our authors at Columbia Global Reports—often complain that book publishers edit and fact-check their work far less than a traditional news organization would. As a publisher, it’s easy for me to see where this evidently odd feature of book publishing comes from. Though book publishing is famously dominated by five big companies, the actual work of getting a book out is strikingly decentralized. Small publishers like us have access to an amazing array of service providers who aren’t publishers themselves—such as, in our case, Publishers Group West, which functions as our sales force, and Strick & Williams, which designs our books. As a nonprofit publisher, we can afford to invest in editing and fact-checking, but the one essential function that can’t be outsourced is establishing the identity of the house and drawing attention to its work. Seeing that firsthand has cleared up the mystery (for an author like me) of why acquiring and marketing are the primary tasks for publishers.

. . . .

Are you active on social media? Great. Can you produce an op-ed-length version of the core argument of your book? Even better. Are you adept at being interviewed? Will you turn in a very complete version of your author questionnaire?

Link to the rest at Publishers Weekly

When PG read the last paragraph of the excerpt above, the first thought that came to his mind was, “Now what is it that traditional publishers actually bring to the table for an author?”

From Publishers Weekly:

With sales up in all categories, unit sales of print books rose 9.5% in the week ended Oct. 31, 2020, over the comparable week in 2019, at outlets that report to NPD BookScan. The top-selling book was The Deep End (Diary of a Wimpy Kid #15) by Jeff Kinney, which sold more than 171,000 copies and helped to drive up sales in the juvenile fiction category by 15.5%. A second new release that landed high on the category list was Jimmy Fallon’s 5 More Sleeps ’til Christmas, which sold more than 21,000 copies. For most categories, sales increases over the week ended Nov. 2, 2019, weren’t driven by hot new bestsellers but by solid sales overall. The #1 title in the juvenile nonfiction category, for example, was Big Preschool Workbook, which sold a modest 7,200 copes. The YA fiction category, which had a 25.7% increase, was once again led by Stephenie Meyer’s Midnight Sun, which sold more than 17,000 copies.

Link to the rest at Publishers Weekly

From Publishers Weekly:

While the industry waits to see who the new owner of Simon & Schuster will be, another large trade publisher has been put up for sale: Houghton Mifflin Harcourt said it is exploring the sale of its trade division. Though not one of the Big Five trade publishers, HMH Books & Media is in the next tier, with sales in 2019 of $180 million.

Those sales, however, represented only 13% of HMH total revenue, with the much larger educational publishing division having reported sales of $1.21 billion last year. The trade division’s share of revenue will likely increase this year: while it reported $129.2 million in sales through the end of September, a 1% sales gain over the comparable period in 2019, the education group’s revenue plunged 46.3% to $698 million.

The struggles that HMH’s education group has encountered in transitioning from being a print-based publisher to a digital-focused publisher drove the company’s leadership to look for a buyer for the trade group. The pandemic has led to a big drop in sales of K–12 instructional materials—the Association of American Publishers put the decline at 21.4% through the first nine months of 2020—while accelerating the demand for digital content.

HMH explained the planned divestiture of the trade group by noting that the sale is part of its effort to make HMH “a pure-play technology learning company.” To achieve that goal, it implemented a restructuring in early October to cut costs and focus its energies on digital products. The action eliminated 525 jobs in the educational group, though the trade division was not affected.

Link to the rest at Publishers Weekly

From Publishers Weekly:

In a surprise announcement this morning, Holtzbrinck announced that John Sargent, CEO of Macmillan, will leave Macmillan and its parent, Holtzbrinck Publishing Group, on January 1. Don Weisberg, president of Macmillan US Trade, has been named to succeed Sargent as CEO of Macmillan Publishers, while Susan Winslow, general manager of Macmillan Learning, will head that division as president. In addition to overseeing all of Macmillan, Sargent was an executive v-p of Holtzbrinck.

In making the announcement, Holtzbrinck said Sargent’s departure is due to “disagreements regarding the direction of Macmillan.”

The family shareholders, the supervisory board, my colleagues and I thank John Sargent deeply for making Macmillan a strong and highly successful publishing house and for his most helpful advice,” Stefan von Holtzbrinck, CEO of the Holtizbrinck Publishing Group, said in a statement. “John’s principles and exemplary leadership have always been grounded in worthy, essential causes, be it freedom of speech, the environment, or support for the most vulnerable. Since Holtzbrinck shares these ideals, they will live on.

Link to the rest at Publishers Weekly

In case anyone harbored any misconceptions about who the real bosses of Macmillan are.

As PG has said before, the CEOs of Big Publishing are nicely-tailored middle managers. “The family shareholders” and similar groups and entities are the real bosses.

PG suspects “disagreements regarding the direction of Macmillan” translates from the original German as “Mr. Sargent didn’t make his numbers. We want to see more sales and much higher profits.”

However, since PG doesn’t speak German and his last name is not von Holtzbrinck, all this is idle speculation.

However, in the midst of this little dust-up, you must never forget that, first and foremost, traditional publishers are Curators of Our Culture or, more specifically, Kuratoren unserer Kultur.

From Publishers Weekly:

When Carmen recounted waking up to the prodding batons of U.S. border guards after fainting from exhaustion during her third attempt to enter the United States from Mexico via the Rio Grande River, I remained speechless.

By 2012, I’d spent seven years and hundreds of hours interviewing women like Carmen who survived unimaginable horrors, followed by another two years helping flesh out, fact-check, and proofread their perseverance narratives for the 50 Women anthology series, two books of testimonies told by 50 women from 30 countries, who mostly survived inconceivable acts: female genital mutilation, assault, genocides, armed conflict, and fleeing dangerous regions on foot, to name a few.

Despite the series’ impressive endorsement list and the breadth of world issues it brings to life, agents and publishers repeatedly told me the books had “no market” and relegated them to “ethnic” categories.

Their responses baffled me then and they baffle me now, especially after witnessing the bidding war, film option, and Oprah Winfrey support Jeanine Cummins received for American Dirt. Her “privilege” is common in publishing. The characters of American Dirt have experiences like those of real people I have interviewed and whose stories of treacherous migrations fill the daily news cycle. Yet the story receiving accolades, money, and attention is a work of fiction, written by a woman lacking personal experience with these issues or the Latinx diaspora.

This is partially because publishing industry leaders do not reflect the people and the consumers that they serve. Earlier this year, independent children’s book publisher Lee & Low Books released its 2019 Diversity Baseline Survey, which revealed that 76% of respondent publishing staff, review journal staff, and literary agents are white.

And even with the advent of the #MeToo movement, we still focus about how women have sex, their beauty products, and their wardrobes, but we’re still not willing to listen to survivor narratives unless they’re through a polished filter. Unless women are a sellable, sensationalized package, we will still be shooed away, ridiculed, or picked apart for speaking out. It is discouraging that, as the case of American Dirt illustrates, people care more about a fictional story or a white savior narrative than about real stories of parent-child border separations and draconian orders against those attempting to migrate. No one to my knowledge offered the immigrant women I interviewed from Mexico and Central America who underwent treacherous migrations a seven-figure advance to tell their stories. As migrants, they don’t represent our familiar privileged lenses. They are an inconvenient truth.

We relate to privileged women or fictional characters more than immigrant women because survivor narratives are uncomfortable. They are more evidence that pervasive inequality persists. Their stories are not entertaining or sensual but painful and shocking, and that is why privileged narratives prevail in our culture. With fictional characters, we can similarly avoid digesting reality’s discomforts, but in doing so our perspectives of controversial issues are shaped by either privilege or fabrication, and, sadly, real women’s voices at the heart of crucial matters are extinguished.

Link to the rest at Publishers Weekly

Don’t be evil. Self-publish.

From Publishing Perspectives:

Described as a site “to support families, educators, communities, organizations, and readers who are working to combat racism and end racial inequities in our daily lives,” Penguin Random House in New York today (September 22) has announced an online hub of resources.

The Conversation is an extensive curated aggregation of “programming for readers, including discussion guides, title lists, and special content” with “a strong focus on family reading and community engagement,” the publishing house says in its media messaging.

Its core resource, of course, is the many relevant lists of titles that a publisher the size and international reach of PRH can bring to bear on a topic. But the site also features “resources to facilitate dialogue about books by Toni Morrison, James Baldwin, and other iconic writers,” the company says.

“It will also provide toolkits, inspired by the works of Ibram X. Kendi and Jennifer L. Eberhardt, for creating antiracist workplaces. The site will feature books and content from all of Penguin Random House’s publishing divisions, and the company is creating book bundles and materials for independent bookstores to help these businesses with their outreach to local schools and libraries.”

As might be expected, children’s interests are “a primary focus,” featuring information for parents “for raising antiracist children” with titles from Jacqueline Woodson and Nic Stone and others. Coming later in the autumn, a family-reading initiative is to be added, with reading guides “for the adult and young-reader editions of Bryan Stevenson’s Just Mercy and Trevor Noah’s Born a Crime, along with video content and other resources to facilitate meaningful family conversations.”

Link to the rest at Publishing Perspectives

From Digital Pubbing:

Publishing is often considered to be a female job. It revolves around emotional intelligence and creativity. There are a lot of soft skills necessary to work with authors and their pieces of writing. Unfortunately, when the statistics get broken down, the numbers paint a different picture. While there’s a majority of women in the editorial department, the executive positions see fewer women involved.

In 2017, there were only two female CEOs among the top 30 publishers. The pay gap also exists, and it’s a reflection of men taking on higher-level roles. That only proves that even though women are pillars of the publishing industry, men will find their way to the top.

Gender Inequality Among Authors

It’s not the gender inequality burden per se that’s been placed on the authors—it’s a fear of recognition. Many female authors decide to use the male pseudonym to explore what it’s like to publish as a man. That way, they could experience anonymity, reach a male audience, and publish without prejudice.

It seems that nothing has changed since the 19th century when the Bronte sisters published their works under male names. Today, J.K. Rowling is just one example. She used the pen name Robert Galbraith to publish Cormoran Strike novels. However, there seems to be a difference. While female authors of the past feared public judgment and used the new identity as an escape, female authors of today use male pen names to distance themselves from their previous work. Today’s reason seems a tad bit better.

Unconscious Bias and Books

Many female authors felt the pressure of unconscious bias on their skin. Some have sent their manuscript to publishers and received a meager number of responses, but the numbers increased when they used male pen names. Books written by women are also priced 45% less than those written by men.

Fewer women are featured in publications than men, which can be considered strange since women generally buy and read more books. When it comes to purchasing, people are usually inclined to buy books written by their gender. This only means that the readership also expresses unconscious bias.

Link to the rest at Digital Pubbing

PG notes the bio of the author:

As the SEO manager of TeamStage, Tina also relies on her degree in Modern English & Literature to write about the importance of project and team management in executing a successful strategy, top to bottom. Off work, she likes to look for the perfect green curry spots, explore temples in Southeast Asia, and treat herself to cheesecake and matcha latte, in that order.

PG also suggests that J.K. Rowling used the pen name Robert Galbraith for branding and marketing purposes.

J.K.’s name was and is gold in the childrens/YA market. PG suspects that she was likely concerned that, if parents and others automatically purchased the newest J.K. book because their kids loved the last one, book stores would have been inundated with returns as soon as Little Susi/Little Johnnie realized that Hermione and Harry were nowhere to be found. Plus, after listening to Susi and Johnnie’s heartbroken wails of disappointment, the adult book purchaser might have hesitated before picking up the next book with J.K.’s name on the cover.

What is described in the OP as J.K. “distancing” herself from her previous work, a plight that is “a tad bit better” from whatever hellhole to which she would have been condemned in some other, even less-enlightened age is simply additional evidence that J.K. is a very intelligent woman who is smart about managing her publishing career.

As far as the antediluvian nature of the power structure of Big Publishing, PG agrees in a broad sense but points out that female publishing CEOs show no sign of being any less blinkered than their male peers and no reasonably-intelligent 2020 female college graduate is likely to go to work in publishing and suffer through Twentieth-Century wages and working conditions. A degree in Modern English and Literature might possibly condemn one to such a fate, however.

From Jane Friedman:

Recently you may have heard about book publishing’s printing problems from outlets such as the New York Times and Publishers Weekly. In the US and UK, spring and summer titles were delayed until fall, making for a crowded season. Not only is it challenging to get media attention for new releases right now, but it’s also leading to a “printer jam”—a tight printing market.

Meanwhile, a surge in print book sales during the pandemic, with a volume increase of about 12 percent over the summer, has made things worse. In fact, for the year print book sales are up by nearly 6 percent versus 2019; traditional publishing is expected to have its strongest performing year since 2010. But it has come at a cost: reprints that normally take two weeks now sometimes take more than a month. Some publishers have now pushed back release dates to 2021 as a result of low printing capacity.

So what’s caused this tight print market?

Printing delays are problematic—but the problem has little to do with the health of book publishing.

Book publishing is just a fraction of the overall printing and paper business in the US, and it will continue to be at the mercy of bigger marketplace changes. The printing market has been tight since at least 2018 for various reasons, all complicated by issues such as tariffs on paper. Even pre-pandemic, there wasn’t any slack in the system.

We talked to industry veteran Bo Sacks about the current environment and how we reached this point. Sacks has observed the evolution, growth, and decline of printers for the last 50 years. “They’re in serious debt, which is part of the problem,” he said. That’s because of the long, ongoing battle between the two largest printers in the United States—LSC Communications and Quad—to buy up market share. Sacks says sometimes the printers would buy a company just to get the clients, then shut down plants. Quad, in fact, only entered the book-printing business in 2010, and through just that type of scenario. But these decisions were made in another era, Sacks said: “2010 seems a lot longer than 10 years ago. The difference from that moment until now is unbelievable.”

Sacks said that Quad built the company on the expectation that long-run magazines would go on forever. (Long-run magazines are titles that get printed in extremely high quantities.) But that’s not a business model that works today. “The long-run [magazine] titles are diminishing and dying left and right,” Sacks said. “So what they’ve done in the last decade is buy plants that focus on short-run printing.” He says that getting quality workers—productivity—has also been part of the problem. And indeed, at the Book Industry Study Group annual meeting this year, an industry expert on book manufacturing said that a tight labor market is one of the industry’s biggest problems, and perhaps only automation can solve it.

. . . .

Ingram is helping publishers (of all sizes) meet increased demand for books as the supply chain gets tighter and uncertain.

Due to the pandemic and current events (see: political books related to the US election), some books are more in demand than ever, exacerbating the supply problem and creating order backups.

Industry vet Mike Shatzkin wrote about how publishers’ ability to keep fulfilling orders during the pandemic has relied heavily on Ingram’s Guaranteed Availability Program, which uses print-on-demand to ship books to accounts within 24 hours. This program makes it possible to deliver “just about any quantity of books to just about any account in the world. With just about any return address you want on the package,” Shatzkin writes.

Indeed, Ingram is critical in the US market as the biggest wholesaler and distributor of print books; its operations include Lightning Source, a print-on-demand printer used by small and Big Five publishers alike, as well as IngramSpark, its self-publishing arm. Turnaround times for print-on-demand through Ingram have become significant: 22 business days, not counting shipping. Before the pandemic, typical turnaround time was a few days.

As Shatzkin notes, five of the top 10 New York Times nonfiction bestsellers in June 2020—related to social justice and antiracism—were supplied by Ingram’s Lightning Source division and benefited from the GAP program. If publishers had waited even two or three weeks for supply, those sales would’ve been completely lost.

However, one group is not so happy with Ingram: authors using IngramSpark. Print turnaround times for self-publishing authors using the service have been 22 to 24 business days (plus shipping time) since May. Author Andrew Shaffer said, “I’ve been working on a new self-published book, and a five–six week turnaround to get a single proof copy is unworkable. Then when I make a change to the cover or whatever, I have to wait five–six more weeks to see how it prints.”

Ingram announced earlier this year they’re investing in their print-on-demand operations across the globe and will hire hundreds of new employees to run new equipment now being installed. In an August 12 presentation, Ingram representatives spoke directly to publishers’ concerns about managing inventory and making books available as buying patterns keep shifting. Matt Mullin, senior key accounts sales manager at Ingram Content Group, advocated that publishers move as many backlist titles as possible to print-on-demand and consider using Ingram programs like GAP, which keep titles available via print-on-demand if conventional supply runs out.

. . . .

Publishers haven’t been great at predicting which books or categories will spike in demand. In February and March, book publishers realized the scope of the pandemic and made the decision to stock up on pandemic and dystopian literature, Mullin said. But people don’t, in fact, want to read about the end of the world while stuck at home. In fact, one UK study found such literature rated at the bottom of what consumers’ stated preferences are. Of course, we now know what did sell and continues to sell: home-education materials. While some trends might be predictable, like gardening in summer, “What’s amazing is how widespread the [sales] uncertainty is. It really goes across every category,” Mullin said.

In a Publishing Trends article looking at the recent increase of digital and POD printing, Lorraine Shanley writes, “The old model of looking at the unit cost of a manufactured book has morphed into looking at the cost per unit sold. And, as printers close and consolidate, … flexibility becomes more important, forcing publishers to look at ‘total cost of ownership.’ How do the advantages of having inventory on hand in your own warehouse weigh against the carrying costs—or the possibility that the warehouse closes or the inventory can’t get to the end user?” That is the calculation that publishers must make during the pandemic, and it’s the kind of uncertainty that will carry through 2020, and into much of 2021.

Link to the rest at Jane Friedman

From Publishing Perspectives:

Many in world publishing are surprised this morning (September 17) as a series of top roles at Big Five publisher Macmillan undergo fast change.

Holtzbrinck in Stuttgart has announced “with great regret” that John Sargent will depart both Macmillan and the Holtzbrinck Publishing Group as of January 1.

The reason for Sargent’s departure is described by the German corporation’s statement as “disagreements regarding the direction of Macmillan.”

Don Weisberg, who currently is president of Macmillan US trade, has been named to succeed Sargent. And Susan Winslow, until now the company’s general manager, becomes president of Macmillan Learning, effective immediately.

In a prepared statement, Holtzbrinck Publishing Group CEO Stefan von Holtzbrinck says, “The family shareholders, the supervisory board, my colleagues and I thank John Sargent deeply for making Macmillan a strong and highly successful publishing house and for his most helpful advice.

“John’s principles and exemplary leadership have always been grounded in worthy, essential causes, be it freedom of  speech, the environment, or support for the most vulnerable. Since Holtzbrinck shares these ideals, they will live on.”

. . . .

To many following issues of diversity and equity in publishing, Susan Winslow’s promotion to president of Macmillan Learning is of special interest. The new role makes her one of only a small number of women who lead educational publishing and ed-tech companies.

She has been general manager of the division for three years and has more than three decades of experience in educational publishing across the business.

. . . .

It’s impossible to know from the Holtzbrinck announcement today what “disagreements regarding the direction of Macmillan” means. It’s not clear that that line or Sargent’s impending departure can be seen as related to that quite radical management-model adjustment of the summer.

Link to the rest at Publishing Perspectives

PG does not (of course) have any insights into the inner workings of Macmillan or any other large US traditional publisher. To be fair, PG has not attempted to penetrate the cone of silence that surrounds most of what happens in large publishers, but expects he would be firmly rebuffed should he ever attempt to do so.

However, it is not unusual for respected and competent leaders of organizations owned by large international media conglomerates like Holtzbrinck to be terminated for not making their numbers (that is, the revenue and profit numbers demanded by the real bosses). With these folks, it’s all about the Benjamins (einhundert Euro or eine Million Euro). Achieve your targets and, absent criminal charges, you’re gold. Miss and you’re geschichte.

Nur die Harten kommen in den Garten.

From Publishing Perspectives:

Within an hour of each other today (September 15), two Big Five publishers in New York City have announced newly created diversity-focused directorial positions.

At Simon & Schuster, president and CEO Jonathan Karp has issued a memo to the workforce, introducing Amanda Armstrong-Frank in the role of director of workplace culture and diversity initiatives.

And at HarperCollins, senior vice-president in human resources Diane Bailey has named Gisselda Nuñez to the role of vice-president for diversity, equity, and inclusion.

Both companies, of course, carry major influence on the international stage.

And both appointments are being made amid intensifying international focus on how publishing’s output–and its companies’ employees and leadership–can better reflect the complex and deeply multicultural nature of contemporary society and the consumer base.

. . . .

In her new role, Karp writes to Simon & Schuster’s staff, Armstrong-Frank is to report both to him and to Marva Smalls, the executive vice-president and global head of inclusion for S&S’ parent corporation ViacomCBS.

Armstrong-Frank, he writes, “will have the benefit of direct access to the many resources of the office of global inclusion under Marva, bringing to Simon & Schuster a wealth of perspective and expertise to combine with her own deep understanding of Simon & Schuster’s employees, our culture, and challenges particular to the publishing industry.

“Amanda will be an agent for change,” Karp writes, “who will advise, advocate, and act to improve workplace culture, including diverse representation at all levels. She will partner with me in helping to facilitate conversations and access to senior management, building targeted development programming and expanding management participation in our extensive recruitment outreach to pools of BIPOC [Black, Indigenous, and people of color] talent.”

Armstrong-Frank’s brief includes developing with human resources “much-anticipated diversity and inclusion training” for “all Simon & Schuster employees annually,” Karp writes, “and as part of new-hire onboarding to support a culture of awareness, inclusion, and psychological safety from Day One.

“Of course,” he writes, Armstrong-Frank “will ensure that our very active diversity council continues to play an important role in the life of the company by encouraging the engagement of BIPOC, LGBTQ+, and other employees from diverse backgrounds, and by drawing the attention of senior management to critical issues of concern.”

Armstrong-Frank’s background includes service on the publisher’s diversity council since 2005, management of the company’s “associates program,” which Karp calls “an important pipeline of diverse talent, and mentoring. She has been with the company since joining sales in 1994 and has worked in managerial roles in business operations, customer programs, and advertising.

“She has long been a reliable sounding board,” Karp writes, “and in recent months has generously shared her insights and wise counsel, helping us gain valuable perspective and envision a better way forward for Simon & Schuster, with a workplace culture befitting our place as an industry leader.”

Link to the rest at Publishing Perspectives

PG wonders if S&S included an adequate number of buzzwords in its announcement or whether Ms. Armstrong-Frank should have been consulted to make certain there were enough.

Perhaps he missed it, but PG didn’t notice anything in the OP that suggested these changes were going to provide copious benefits to authors.