Paramount rejects deal to promote Simon & Schuster to Penguin

The penguin emblem is seen on the spines of books displayed on a shelf at E-book Passage on November 2, 2021 in Corte Madera, California. The US Justice Division is suing Penguin Random Home and Simon & Schuster to stop the businesses from finishing a $2.175 billion merger.

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International Paramount mentioned Monday it had canceled its $2.2 billion deal to promote e book writer Simon & Schuster to rival Penguin Random Home, weeks after a federal decide threw out the merger.

Penguin, which is owned by German media conglomerate Bertelsmann, mentioned it nonetheless believes Simon & Schuster is an efficient match for its enterprise, nevertheless it accepted Paramount’s determination.

“We consider the decide’s ruling is flawed and intend to enchantment the choice, assured that we will current a compelling and persuasive argument to reverse the decrease court docket’s ruling on enchantment,” Penguin mentioned in an announcement Monday afternoon. “Nevertheless, we have now to simply accept Paramount’s determination to not transfer ahead.”

In its announcement on Monday, Paramount mentioned Penguin is awaiting a $200 million settlement charge.

Paramount additionally indicated that it might nonetheless attempt to offload Simon & Schuster.

“Simon & Schuster is a extremely beneficial firm with a latest file of sturdy efficiency,” Paramount mentioned. “Nevertheless, it isn’t video-based and subsequently does not match strategically into Paramount’s bigger portfolio.”

Learn the total press launch right here:

Paramount International (f/ok/a ViacomCBS Inc.) (“Paramount”) introduced that it and sure of its subsidiaries had entered right into a inventory buy settlement (the “Buy Settlement”) to promote the Simon enterprise & Schuster to Penguin Random Home LLC (a part of the Bertelsmann SE & Co. KGaA group, “Penguin Random Home”), topic to the satisfaction of sure customary situations, together with receipt of relevant regulatory approvals (the “Sale”).

On November 2, 2021, the USA Division of Justice (the “DOJ”) filed a lawsuit in the USA District Court docket for the District of Columbia to dam the sale, and on October 31, 2022, the Court docket dominated in favor of the DOJ, comply with the Sale (the “Resolution”). Because of the choice, on November 21, 2022, Paramount terminated the acquisition settlement in accordance with its phrases. Penguin Random Home is required to pay Paramount a $200 million fantastic. Simon & Schuster stays a non-core asset to Paramount, as decided in early 2020 when Paramount carried out a strategic assessment of its belongings.

Simon & Schuster is a extremely beneficial agency with a latest file of sturdy efficiency; nonetheless, it isn’t video-based and subsequently does not match strategically into Paramount’s bigger portfolio.

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