Federal judge blocks
Penguin Random House reached an agreement with the Department of Justice to acquire the publishing business Simon & Schuster .
Judge Florence Y. Penn stated that the companies were “prohibited and restricted from consummating the proposed merger, or Other ways to implement Penguin Random House , LLC and Simon & Schuster , Inc.” found that the effect of the merger may have been “significantly less competition.” Pan ordered the two sides to meet to discuss the proposed cuts to the opinion.
background
ViacomCBS announced in November that it had agreed to sell the publishing business Simon & Schuster for USD 2 to Penguin Random House LLC, a wholly owned subsidiary of Bertelsmann SE & Co. KGaA company. Billion. The cash transaction is expected to be completed by 450. After the acquisition, Simon & Schuster will continue as an independent publishing unit under Penguin Random House umbrella. Jonathan Karp, President and Chief Executive Officer, and Dennis Ulau, Chief Operating Officer and Chief Financial Officer, Simon & Schuster Eulau) will continue to lead the company.
DOJ filed in November Tried to block Penguin Random House takeover due to antitrust concerns. If the deal goes through, the Department of Justice said, Penguin Random House will “pay what books and authors are published in the United States.”
The American Booksellers Association (ABA) requested the DOJ in December 2020 questioned the acquisition over antitrust implications, expressing concern that the acquisition would lead to a massive consolidation of power in the U.S. book publishing industry, which could make it harder for authors and editors to get the support they need write books. Penguin Random House and Lawyers for Viacom CBS argued in a court last December 2021 that the proposed acquisition would benefit the authors and be “pro-competitive,” And added that it should not be blocked under federal antitrust laws. Their lawyers claimed that the merger would allow Penguin Random House to bring “enhanced distribution capabilities to more authors, including
Simon & Schuster
.” They also said the DOJ could not prove the merger would reduce competition or reduce compensation for book rights.
Dan Petrocelli, lead attorney at Penguin Random House , said the merger “would only increase competition.” Penguin Random House Publisher Services clients include Seven Seas Entertainment , Kodansha America Publishing (responsible for handling Kodansha manga and vertical version Imprint), Square Enix Holdings Co., Ltd. for its Square Enix Manga & Books publishing brand, and Dark Horse Comics .
Simon & Schuster Distribution Viz Media North American comic and novel publication.
Source: Deadline (Ted Johnson)
