Successes include several novels by Colleen Hoover, which have dominated fiction bestseller lists, and a surprise best-selling memoir, “I’m Glad My Mom Died,” by Jennette McCurdy, which has sold one million copies since its release. published in August, the company said.
“Simon & Schuster has never been more profitable and valuable than it is today,” Jonathan Karp, Simon & Schuster’s CEO, said in a letter to staff Monday. “As I’ve noted before, we’ll be celebrating our 100th anniversary in April 2024, regardless of who owns us — and we’ll have a lot to celebrate.”
In a statement released Monday afternoon, Paramount indicated it does not consider Simon & Schuster appropriate for its broader strategy. “Simon & Schuster is a very valuable company with a recent record of strong performance, but it is not video-based and therefore strategically does not fit into Paramount’s broader portfolio,” the company said.
Until the agreement with Penguin Random House expires Tuesday, Paramount is prohibited from discussing a sale of Simon & Schuster with other suitors. But Paramount will likely explore a potential sale of Simon & Schuster in the new year, according to a person familiar with the matter, who said the company will wait for an offer that reflects its improved financial performance and was not authorized to disclose confidential information. discuss matters on paper.
The list of suitors could include companies that expressed interest in Simon & Schuster last time, including French media conglomerate Vivendi and HarperCollins owner News Corp, according to two people familiar with the case who also discussed confidential matters and spoke anonymously. Simon & Schuster is also likely to gain interest from financial bidders, according to a private equity firm executive who spoke anonymously to discuss deal-closing strategy.
However, it’s unclear whether the headaches and legal costs of the lawsuit could dampen other publishers’ enthusiasm. At trial, executives from two other major publishing houses, Hachette and HarperCollins, testified that they would like their own companies to buy Simon & Schuster. It is also unclear how the Ministry of Justice views such a takeover. Market share concerns would be less pronounced — especially for Hachette, which is significantly smaller than Penguin Random House — but the number of publishers big enough to compete on the most expensive books would still drop from five to four.
Some antitrust experts said any deal to sell Simon & Schuster to another Big Five publisher would likely come under scrutiny from regulators.
