Private Firm KKR Purchased Simon & Schuster For $1.62 Billion
by upasana sarbajna Business 08 August 2023
In late 2020, Paramount announced Simon & Schsuter’s sale to Penguin Random House for $2.2 billion, a deal that might have made the budding company the biggest in the US to date. However, the Department of Justice under Biden’s administration has taken a more assertive stance over the consolidation compared to other newer presidencies, sued for blocking the sale in 2021.
Private equity firm KKR has purchased Simon & Schuster, months post the federal judge had obstructed its purchase by the opponent publisher Penguin Random House because of concerns that the competition might decline the book market.
A KKR executive has termed this opportunity to be a chance to be on board with “one of the most effective” book publishers.
“The private equity giant will buy Simon & Schuster for $1.62 billion in cash,” as confirmed by the parent house Paramount Global. Simon & Schuster will, however, operate as a standalone entity while being led by CEO Jonathan Karp.
“We are delighted,” Karp added on Monday. “We will remain an independent company, and not only will we continue to thrive, but with the help of KKR, we can become even greater.“
Paramount on Monday announced a loss of $424 million for three months which led up to 30th June. The company will be using the sales proceeds to pay for the down debts. The agreement is, however, subject to the approval of the government but may not face the objections that were raised by the Penguin Random House deal.
Authors like Colleen Hoover, Stephen King, and Bob Woodward are all included under Simon & Schuster, which is included in the “Top 5” of New York publishers along with
HarperCollins Publishers, Penguin Random House, Hachette Book Group, and Macmillan. “We’re not going to tell them what to buy, what to publish, or what not to publish. There’s a 99-year legacy of editorial independence that we’re going to protect.” – Richard Snaroff, Former Executive, Penguin Random House.