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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.
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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.
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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.
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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