KKR & Co. signed a deal to buy Simon & Schuster, the book publishing arm of Paramount Global, for $1.62 billion in cash.
(Bloomberg) — KKR & Co. signed a deal to buy Simon & Schuster, the book publishing arm of Paramount Global, for $1.62 billion in cash.
After the close of the acquisition, the company will be operated as a standalone business with Chief Executive Officer Jonathan Karp continuing in that role, Paramount said on Monday.
Paramount, the media company controlled by the Redstone family, plans to use the proceeds from the transaction to reduce debt as it navigates a transition from traditional TV networks like CBS and MTV to online ones, like its Paramount+ streaming service.
Other bidders for Simon & Schuster had included News Corp.’s HarperCollins and investor Richard Hurowitz with backing from Abu Dhabi’s Mubadala Investment Co.
Simon & Schuster, a nearly 100-year-old business, publishes the works of authors such as Stephen King and Doris Kearns Goodwin. Paramount signed a $2.18 billion deal to sell the company to Bertelsmann SE’s Penguin Random House division three years ago. The US Justice Department sued to block the sale on antitrust grounds.
Bertelsmann agreed to pay a $200 million breakup fee when its deal collapsed last year.
–With assistance from Katie Roof.
(Updates with details of sale.)
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