Simon & Schuster's Penguin Random House Deal Falls Apart, Opens Door To New Potential Bidders

  • Paramount Global PARA, the owner of Simon & Schuster's book-publishing unit, will let its $2.2 billion sale to Penguin Random House collapse, opening doors to new suitors.
  • German media group Bertelsmann SE & Co could not convince Paramount Global to help launch an appeal and extend the deal contract before it expires on Monday, writes Reuters.
  • A federal judge blocked the acquisition on antitrust grounds.
  • According to book tracker NPD BookScan, if Penguin Random House had been allowed to acquire Simon & Schuster, it would have accounted for nearly 30% of all consumer-book sales in the U.S.
  • The move comes as Paramount decided not to support an appeal of a recent ruling that blocked the planned $2.18 billion sale of its Simon & Schuster to rival Penguin Random House, according to people familiar with the situation.
  • Under the terms of their 2020 deal, Bertelsmann would pay Paramount a termination fee of $200 million if the acquisition were "completely prohibited or if the termination date is reached," according to the Bertelsmann 2021 annual report. 
  • The termination date is November 21, the Wall Street Journal previously reported.
  • HarperCollins, controlled by News Corp NWSA NWSA and Lagardere SCA's Hachette Book Group, have expressed interest publicly in buying Simon & Schuster.
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