After more than a year of back and forth with the DOJ over its fate, Simon & Schuster stands alone. Paramount is selling the publishing house to KKR, a private investment firm, for $1.62 billion. “We are pleased to have reached an agreement on a transaction that delivers excellent value to Paramount shareholders while also positioning Simon & Schuster for its next phase of growth with KKR,” Bob Bakish, president and CEO of Paramount Global, said in a statement. “The proceeds will give Paramount additional financial flexibility and greater ability to create long-term value for shareholders, while also delevering our balance sheet.” It’s not as much deleverage as the sale to Penguin Random House would have been, but that acquisition was blocked on antitrust grounds. According to NPR, another antitrust objection is not likely, as KKR doesn’t own another publishing company. So the “big five” will remain five instead of four. Jonathan Karp, president and CEO, and Dennis Eulau, COO and CFO of Simon & Schuster, will continue to lead the company once inside KKR’s portfolio.
