German media group Bertelsmann said on Wednesday it would purchase U.S. publisher Simon & Schuster for $2.175 billion US in cash from ViacomCBS, strengthening its presence in the United States, its second-largest market. "This acquisition will create enormous added value for our company," Rabe said of Simon & Schuster deal. The deal to acquire Simon & Schuster — which reported revenue of $814 million in 2019, is profitable and employs 1,500 staff — is expected to close during 2021 subject to antitrust approval. Size matters with focus on famous authorsJonathan Karp and Dennis Eulau will stay on to run Simon & Schuster under the umbrella of the far larger Penguin Random House. Size is important in publishing as bestseller lists become increasingly dominated by a handful of blockbusters — such as Penguin Random House's edition of ex-U.S. President Barack Obama's memoir A Promised Land.

Source: CBC News November 25, 2020 14:15 UTC