- Paramount Global (NASDAQ:PARA), the owner of Simon & Schuster's book-publishing unit, will let its $2.2 billion sale to Penguin Random House collapse, opening doors to new suitors.
- German media group Bertelsmann SE & Co could not convince Paramount Global to help launch an appeal and extend the deal contract before it expires on Monday, writes Reuters.
- A federal judge blocked the acquisition on antitrust grounds.
- According to book tracker NPD BookScan, if Penguin Random House had been allowed to acquire Simon & Schuster, it would have accounted for nearly 30% of all consumer-book sales in the U.S.
- The move comes as Paramount decided not to support an appeal of a recent ruling that blocked the planned $2.18 billion sale of its Simon & Schuster to rival Penguin Random House, according to people familiar with the situation.
- Under the terms of their 2020 deal, Bertelsmann would pay Paramount a termination fee of $200 million if the acquisition were "completely prohibited or if the termination date is reached," according to the Bertelsmann 2021 annual report.
- The termination date is November 21, the Wall Street Journal previously reported.
- HarperCollins, controlled by News Corp (NASDAQ: NWSA) (NASDAQ: NWSA) and Lagardere SCA's Hachette Book Group, have expressed interest publicly in buying Simon & Schuster.
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