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