Paramount has terminated its agreement to sell Penguin Random House to Simon & Schuster and will not appeal the latest. Federal Court decision to stop merger of publishing companies.
Penguin, a subsidiary of German media giant Bertelsmann, has been ordered to pay a $200 million termination fee to Simon & Schuster’s parent company, Paramount. SEC Filings from Paramount. The proposed contract was worth $2.17 billion. Announced in November 2020..
In late October, U.S. District Court Judge Florence Penn of the government A combination of major book publishing firms would unlawfully reduce competition. Department of Justice Sued about a year ago. One of the first major no-confidence actions by the Biden administration was to block the merger.
In a statement, Paramount indicated it is still looking for buyers.
“Simon & Schuster is a highly valued business with a strong recent track record,” Paramount said in a statement. “However, it is not video-based and therefore does not fit strategically within Paramount’s broader portfolio.” Is.”
“The news is still fresh,” Simon & Schuster president and CEO Jonathan Karp said in an email to staff obtained by CNN Business. “And at this point I don’t have any specific information to share about what’s going to happen in the coming months.”
The lawsuit said the deal would give the combined company greater control over how much writers are paid. He also argued that there would be fewer bidders for highly anticipated books, which would have been another potential setback for authors.
Penguin Random House and Simon & Schuster are among the “Big Five” of major American book publishers.
— CNN Business staff contributed to this report.