ViacomCBS sells Simon & Schuster to Penguin Random House for $2 billion

Simon & Schuster show on the London Book Fair at Kensington Olympia on the 12th March 2019 in London.

Sam Mellish | In Pictures | Getty Images

ViacomCBS introduced Wednesday that it could promote publishing firm Simon & Schuster to Penguin Random House, a subsidiary of Bertelsmann, in a deal price practically $2.18 billion

The transaction is predicted to shut in 2021.

The deal comes after ViacomCBS put the worldwide writer up for public sale, a transfer it made to divest non-core belongings from its firm. Proceeds from the deal will likely be put towards ViacomCBS’s streaming enterprise, fund its dividend and pay down debt. The firm additionally not too long ago offered CNET for $500 million as a part of this technique.

Steaming has grow to be a very necessary avenue for media firms as coronavirus circumstances have risen and conventional leisure shops like film theaters and theme parks are largely closed to the general public or seen as unsafe locations.

With Simon & Schuster as a part of the corporate, Bertelsmann’s publishing empire will account for a few third of all books offered within the U.S. The deal would put a few of the world’s bestselling authors together with John Grisham, Bob Woodward, Sandra Brown and Stephen King beneath the identical company umbrella.

Simon & Schuster will proceed to be managed as a separate publishing unit beneath Penguin Random House. Jonathan Karp, president and CEO of Simon & Schuster, alongside Dennis Eulau, who acts as chief working officer and chief monetary officer for the corporate, will proceed to helm the publishing firm.

The deal may draw consideration from the U.S. Justice Department, because the mixed shares of Simon & Schuster and Penguin Random House are giant sufficient to dredge up antitrust considerations.

Book gross sales have been significantly sturdy this yr because the coronavirus pandemic has restricted different leisure choices. There can be a robust curiosity in political memoirs and books on social justice. In the nine-month interval finish Oct. 3, print ebook gross sales rose 6.4% from the prior yr in accordance to information from NPD BookScan.

This is a breaking information story. Please verify again for updates.

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