The Simon & Schuster deal collapsed
Bertelsmann decided not to appeal to New York
22/11/2022 1:04
Bertelsmann has to change course: The group actually wanted to buy the US book publisher Simon & Schuster for a sum of billions and thus expand its position in the USA. Nothing will come of it.
The multibillion-dollar takeover of US publisher Simon & Schuster by the German group Bertelsmann has collapsed. Late Monday evening in Gütersloh, Bertelsmann announced that, after discussions with Simon & Schuster shareholder Paramount Global, the original plan to appeal a US court ruling was no longer being pursued.
The judges banned the purchase weeks ago. The US government had successfully opposed the purchase in an antitrust lawsuit. Bertelsmann initially planned to appeal.
The group announced its original plans in November 2020. The Penguin Random House publishing group, which is part of the portfolio, was supposed to take over the New York publishing house Simon & Schuster, which has under contract best-selling authors such as Stephen King, for approximately $2.18 billion.
Bertelsmann expected the deal to be completed in 2021. With the takeover, the group wanted to expand its position in the United States. Bertelsmann is already the sole owner of New York’s Penguin Random House, the largest commercial book publishing group in the world.
Gütersloh’s media, services and education group also said that Penguin Random House will grow significantly organically and through acquisitions in the coming years. You will drive the growth of your global book publishing business.
The failed deal is another setback for Bertelsmann. Only in September did the RTL group, which is part of the group, reject the proposed merger of two private television groups in France. The background was official requirements. Competition examiners had previously expressed concerns.
