The ruthless side of that business was immortalized in a 1989 book, “Barbarians at the Gate,” which detailed KKR’s acquisition of Nabisco and the burden the deal’s debt left on the company. It could also raise regulatory scrutiny: Paramount’s first attempt to sell Simon & Schuster, to Penguin Random House, was derailed by government antitrust concerns.Īcquisition by a private equity firm, on the other hand, presents its own risks. But it would also mean further consolidation in the industry, with potentially fewer players available to bid on big books, and the chance of layoffs as redundant jobs were eliminated. The publisher, which will celebrate its 100th anniversary next year, has had more than seven owners in its history.Ī sale to another publisher would mean the new management would understand the book business. Since Simon & Schuster was first put up for sale in 2020, many in the publishing industry have fretted over where the company might land. Oberwager is on the board of RBMedia, an audiobook company, and Skydance Media, which teamed up with Paramount Pictures on “Top Gun: Maverick,” a Tom Cruise action drama that generated more than $1 billion. Sarnoff for two decades, and that he “understands the nuances of the book business as well as anyone I know.”Īlso involved is Ted Oberwager, who leads KKR’s gaming, media, entertainment and sports group. In letters to Simon & Schuster’s staff members and authors, Mr. Sarnoff has held multiple positions at Bertelsmann, the company that owns Penguin Random House, and served as chairman of the Association of American Publishers, a trade group. Richard Sarnoff, an adviser to KKR on its media deals, is a familiar name to many in the publishing industry and his involvement is encouraging, said several publishing executives on Monday. Karp will stay on as chief executive after the deal closes. What more could a publishing company want?” “They plan to invest in us and make us even greater than we already are. “I think I speak on behalf of the entire management team when I say we are thrilled with the result,” Jon Karp, chief executive of Simon & Schuster, said in an interview. While private equity investors have had a significant footprint in the book business - different firms have owned literary agencies, publishing houses and the retailer Barnes & Noble - the acquisition of one of the largest publishers in the country vastly increases the hold of financial interests in the business. The deal, for $1.62 billion, will put control of the cultural touchstone behind authors like Stephen King and Bob Woodward in the hands of a financial buyer with an expanding presence in the publishing industry. Paramount said on Monday it had reached a deal to sell Simon & Schuster, one of the biggest and most prestigious publishing houses in the United States, to the private-equity firm KKR, in a major changing of the guard in the books business.
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