Simon & Schuster to let sale to Penguin crumble, sources say By Reuters

By Abigail Summerville and Anirban Sen

NEW YORK (Reuters) – E-book-publishing powerhouse Simon & Schuster will let its $2.2 billion sale to Penguin Random Home collapse on Monday, opening the door for a brand new suitor to attempt to clinch a deal, in line with folks acquainted with the matter.

The acquisition was blocked on Nov. 1 by a federal choose on antitrust grounds. Penguin was unable to persuade Simon & Schuster to launch an enchantment and prolong their deal contract earlier than it expires on Monday, the sources stated.

Penguin will owe Simon & Schuster a $200 million break-up price because of the transaction falling aside.

The sources requested anonymity forward of official bulletins this week. Bertelsmann and Paramount didn’t reply to requests for remark.

The U.S. Justice Division had sued to cease the tie-up of the 2 publishers, which mixed would have accounted for greater than 25% of all print books bought in the USA this yr.

In its grievance it argued the deal would result in decrease earnings for authors due to the decreased competitors. Creator Stephen King testified in favor of the federal government’s arguments in the course of the trial.

Following the deal’s collapse, Simon & Schuster’s proprietor, Paramount World, might be free to discover a sale of the writer anew.

HarperCollins, which is managed by Information Corp (NASDAQ:), and Lagardere SCA’s Hachette E-book Group have beforehand expressed curiosity publicly in shopping for Simon & Schuster.

HarperCollins additionally unsuccessfully bid for Simon & Schuster when it was put up on the market by Paramount in early 2020.

HarperCollins and Hachette didn’t reply to requests for remark.