It is trying to navigate consumers’ shift from watching live TV on a television set to streaming shows and movies on the internet. ViacomCBS owns cable networks Nickelodeon, MTV, BET and Comedy Central as well as broadcast network CBS and movie studio Paramount. ViacomCBS put up Simon & Schuster, founded in 1924, for sale earlier this year as the entertainment company tries to sell off “non-core assets” to pay down debt, please shareholders with dividends and stock buybacks, and invest in streaming. The German conglomerate, which was founded in 1835 and also owns a broad portfolio of broadcast, music and online businesses, has been the sole owner of Penguin Random House since April. So will first ladies such as Barbara Bush, Hillary Clinton, Laura Bush and Michelle Obama.ĭohle declined to say whether there would be any layoffs, saying it was too soon to speculate. Every living former or current American president, from Jimmy Carter to Donald Trump, will have published a book with the new company. Under the new company, authors would range from John Grisham and Stephen King to Barack Obama and Bill Clinton. Simon & Schuster’s current president and chief executive, Jonathan Karp, will continue to lead the publishing house, Bertelsmann said.

Penguin Random House Chief Executive Markus Dohle told The Associated Press on Wednesday that Simon & Schuster would retain its editorial independence and that individual imprints within Penguin Random House and Simon & Schuster could continue to compete with each other for book deals. “This literary leviathan would have 70% of the U.S. “Bertelsmann is not just buying a book publisher, but buying market dominance as a book behemoth,” said News Corp Chief Executive Robert Thomson said in a statement. “To the extent that efficiencies are garnered through consolidation, it is our hope that they are a catalyst to enable greater investment in authors, books, and outreach to readers.”īertelsmann’s rival News Corp., which owns HarperCollins, also slammed the deal.

“As an organization of writers it’s important to us that the publishing industry (thrives), and that there be multiple, robust outlets to bring the widest variety of books to audiences,” said Suzanne Nossel, the CEO of PEN America. The department did not immediately return a request for comment. Department of Justice should challenge it. The Authors Guild, a writers’ organization, said Wednesday that it opposed the sale because it would hurt competition, making it more difficult for authors and agents to negotiate with publishers. ViacomCBS said Bertelsmann will pay a termination fee if the deal fails due to regulatory reasons.Īgents and authors often worry that a concentration of power in publishing could mean less competition for book deals, and lower advances. publisher in modern times would approach the power of the new company.

The companies said the deal is expected to close in 2021, subject to regulatory approval.

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