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Penguin Random House Buys Simon & Schuster

Viacom CBS has received more than half a dozen inquiries from interested buyers, including financial companies and French media giant Vivendi, which holds a minority stake in Hachette through publisher Lagardère. The top three candidates were Bertelsmann, Rupert Murdoch’s News Corp, which owns HarperCollins, and Vivendi. The news that Bertelsmann was approaching the deal was previously reported by the Financial Times.

The merger will be reviewed by President Biden’s team, according to Professor Eric Gordon of the University of Michigan Ross School of Business. “We will sympathize with the plight of the author, who is tougher than the team of the previous administration and cannot negotiate deals or even publish,” the next administration said.

He added that regulators can seek what is known as “structural remedies” in which Penguin Random House must sell other divisions or traces as a condition of the merger. He said the company would need to spin off or sell chunks large enough to create “feasible competitors.”

A Bertelsmann spokesman said Penguin Random House has lost market share in recent years, citing Amazon as a competitive threat to the overall book market. The combination of Penguin Random House and Simon & Schuster will be “less than 20%,” the company said, citing data from the Association of American Publishers, an industry group.

This sale could also have a spillover effect on the entire literary ecosystem. Largest homes are well-equipped to negotiate favorable terms with major retailers such as Amazon, Barnes & Noble, and large retailers, and develop direct sales marketing and sales networks to be less dependent on retailers You can also.

For literary agents and authors, the wave of integration has meant fewer potential buyers of books from unproven authors.

“There was a project that should have sold 150,000 years ago, and now it may not sell to the Big Five at all, but a book that should have sold for $ 500,000 could be $ 1 million.” Literary agent David Kuhn said. “They want to grow rather because they have the most consensus.”

Penguin Random House Buys Simon & Schuster

Source link Penguin Random House Buys Simon & Schuster

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