8 months ago
80 After a Federal Court blocked Penguin Random House’s acquisition of Simon and Schuster implicit antitrust concerns, the 99-year-old publishing institution was enactment back up for sale by Paramount. Now, it’s being sold to the backstage equity steadfast KKR for $1.62 billion. The archetypal merchantability to PRH was for $2.2 billion.
Jon Karp, main enforcement of Simon & Schuster, told the New York Times, “I deliberation I talk connected behalf of the full absorption squad erstwhile I accidental we are thrilled with the result. They program to put successful america and marque america adjacent greater than we already are. What much could a publishing institution want?”
Under KKR ownership, Simon & Schuster employees volition person an ownership involvement successful S&S. Pete Stavros, a co-head of planetary backstage equity astatine KKR, says this involvement gives employees the anticipation of a “life-impacting magnitude of wealth.”
KKR has antecedently bought RBMedia, an audiobooks company, and sold it astatine a profit. It is besides invested successful Overdrive, an ebook and audiobook level utilized by libraries.
The backstage equity steadfast has had its stock of controversy, including saddling Toys R Us with indebtedness that allegedly contributed to its bankruptcy and investing heavy successful fossil fuels and pipelines. KKR has besides faced accusations of maintaining unacceptable surviving conditions successful residential facilities it owns.
