Paramount Global terminated its sale of Simon & Schuster to Bertelsmanns Penguin Random House, rather than appeal a federal courts decision to reject the merger.
The Department of Justice sued to block the proposed merger in 2021, arguing the resulting mega-publisher would drive down author pay and “reduce quality, service, choice, and innovation.”
Penguin Random House is the largest publisher, and Simon & Schuster is the fourth largest. Federal Judge Florence Pan blocked the deal, finding it would lessen competition.
Although Paramount scrapped the sale according to an SEC filing Monday, it is still trying to shed Simon & Schuster, which it says doesnt fit with its overall portfolio.
