Shulou(Shulou.com)11/24 Report--

November 21, according to foreign media reports, people familiar with the matter revealed that Penguin Random Bookstore (Penguin Random House)'s acquisition of rival publishers Simon and Schuster for nearly $2.2 billion will fail on November 21 local time.

It is reported that the deal has been in jeopardy since November 1, when the Federal District Court for the District of Columbia blocked the acquisition on antitrust grounds. Penguin Random House had said it planned to appeal the decision, but failed to persuade Simon and Schuster's parent company, Paramount Global, to appeal and extend the deal before it expires on November 21.

When the deal was first announced in 2020, it was widely believed that the government would approve it, which would further consolidate Penguin Random House's position as the largest publisher in the United States. But the Justice Department tried to block the plan last year, saying the merger would reduce competition for books and lead to a decline in the income of authors, demanding an end to the acquisition. The combination of the two publishers will account for more than 25 per cent of all print book sales in the US this year.

It is reported that the failure of the deal is a major blow to Penguin Random House's ambition to expand its huge market share. Penguin Random House will have to pay Paramount a "break-up fee" of about $200 million because of the failure of the deal, in addition to the huge legal costs arising from the confrontation with the Ministry of Justice in court.

Paramount Global can resell Simon and Schuster after the deal fails. Harper Collins Publishing, owned by News Corp., and Hachette Book Group, which is owned by Lagardale, have previously publicly expressed interest in acquiring Simon and Schuster.

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