Exciting news! Paramount Global is on the verge of announcing a sale of its renowned publisher, Simon & Schuster, to the private investment giant KKR. We might even hear the official announcement today! This marks the second attempt at a deal for Simon & Schuster, as a previous agreement with Bertelsmann’s Penguin Random House was blocked by U.S. regulators last year. However, a transaction with KKR is expected to go smoothly without any regulatory hurdles. Rupert Murdoch’s News Corp-owned HarperCollins was also in the running as a potential buyer.
The price negotiated with KKR for Simon & Schuster is rumored to be around $1.62 billion, which is slightly lower than the previous deal’s value of $2.2 billion. However, Paramount managed to offset this gap with a $200 million termination fee received from Bertelsmann and the accumulated earnings from Simon & Schuster over the years.
Paramount has been actively divesting non-strategic assets and real estate as it focuses on streaming. This sale of Simon & Schuster is part of their strategy to generate fresh cash for their core film and television business. They have also been considering offers for a stake in BET. This deal with Simon & Schuster, known for its impressive roster of authors including Stephen King, is highly anticipated by Wall Street.
CFO Naveen Chopra has expressed optimism about closing the deal this year, stating that the marketing process for Simon & Schuster is well underway. He described it as a significant transaction and emphasized the strong interest from both strategic and financial buyers.
With $510 billion in assets under management, KKR is a major player in the investment world. Stay tuned for more updates on this exciting development!
