On Oct. 31, a federal judge ruled against the merger of Penguin Random House and Simon & Schuster, saying it would “substantially reduce” competition in the publishing industry. While that was a blow to the merger, it wasn’t officially over yet: Penguin Random House had planned to appeal the decision. This would require Paramount (Simon & Schuster’s parent company) to extend the deadline for the deal. Paramount has now stated that they will not be renewing it as of November 22nd.
The failure of the deal means Paramount will receive a $200 million termination fee from Penguin Random House. It’s unclear what will happen to Simon & Schuster now, but they’re still looking for a buyer, and Hachette and HarperCollins have both expressed interest during the process. Simon & Schuster has been hitting record sales lately, and its CEO said, “Today we are more successful and more valuable than ever.”
You can read more about this story in The New York Times.
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