Simon & Schuster Publishing has been sold to rival Penguin Random House in a deal valued at $2.175 billion, with the deal expected to close in 2021 pending regular approvals.
The company will be treated as a separate publishing unit under the management of Penguin Random House, which is itself a subsidiary of German media giant Bertelsmann. Simon & Schuster is the world’s third largest book publisher (Penguin Random House ranks number one), behind the success of Most of the best-selling books such as the late Alex Trebek’s memoirs in The Answer Is…: Reflections On My Life and Stephen King’s recent novel The Institute, among others.
Simon & Schuster’s parent company, ViacomCBS, will use the money from the deal to pay off its debts and invest in streaming technology, and announced in September that it plans to rebrand its CBS All Access streaming service early next year and re-launch it as Paramount+.
She stated that she put Simon & Schuster up for sale earlier this year, saying that it was not an asset to the company, and since then the company has become the center of attention after publishing over the summer several books critical of US President Trump, including:
Author’s memoir: John Bolton The Room Where it Happened
Mary L.Trump: Too Much and Never Enough: How My Family Created the World’s Most Dangerous Man
Bob Woodward’s book: Rage
This deal, if closed, would be a boost for the book publishing industry, and the decision to merge the companies was no stranger to the publishing market, as it wasn’t long ago that Penguin and Random House were separate companies.