Paramount Agrees To Sell Simon and Schuster To KKR

Paramount said on Monday it had reached a deal to sell Simon and Schuster, one of the biggest and most prestigious publishing houses in the United States, to the private-equity firm KKR, in a major changing of the guard in the books business. From a report: The deal, for $1.62 billion, will put control of the cultural touchstone behind authors like Stephen King and Bob Woodward in the hands of a financial buyer with an expanding presence in the publishing industry. While private equity investors have had a significant footprint in the book business --different firms have owned literary agencies, publishing houses and the retailer Barnes & Noble -- the acquisition of one of the largest publishers in the country vastly increases the hold of financial interests in the business. [...] Since Simon & Schuster was first put up for sale in 2020, many in the publishing industry have fretted over where the company might land. A sale to another publisher would mean the new management would understand the book business. But it would also mean further consolidation in the industry, with potentially fewer players available to bid on big books, and the chance of layoffs as redundant jobs were eliminated. It could also raise regulatory scrutiny: Paramount's first attempt to sell Simon & Schuster, to Penguin Random House in 2020, was derailed by government antitrust concerns.

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