Simon & Schuster acquired in a $1.6 billion deal, a new owner emerges

In an impressive deal worth $1.6bn (£1.25bn), book publisher Simon & Schuster has been acquired by private investment firm KKR. The New York-based publishing giant, which was previously owned by Paramount Global, will now operate as a standalone business. With a rich history dating back to 1924, Simon & Schuster has published more than 36,000 titles, including the popular romance novel “It Ends With Us” by Colleen Hoover.

Simon & Schuster is one of the United States’ leading publishers, joining the ranks of Penguin Random House, Macmillan, and HarperCollins as part of the prestigious Big Five. Jonathan Karp will continue to serve as the company’s chief executive.

KKR has expressed its plans to expand Simon & Schuster’s genres and categories, while fostering an “ownership culture” by allowing employees to participate in an equity ownership scheme. Richard Sarnoff, the chairman of KKR, believes in strengthening the publisher’s partnerships with literary talent by investing in their capabilities and distribution networks, all while maintaining the legacy of editorial independence that spans 99 years. The completion of the sale will grant Paramount additional financial flexibility, helping the media and entertainment conglomerate manage its debt during the transition from broadcast television to online streaming services.

Regulatory approval is required for the deal, which could mark the end of Paramount’s search for a buyer for Simon & Schuster. Previous attempts to sell the book company to Penguin Random House were thwarted by US regulators due to concerns about decreased competition and lower advance payments for authors. Paramount received a termination fee of $200m from Penguin after the failed merger.