'Publisher of Bob Woodward's Books to Be Sold'... Simon & Schuster Sold to German Company

독 Penguin Random House to be acquired by Simon & Schuster for 2.2 trillion won
Creation of a US mega publishing company
Penguin Random famous for publishing Obama's books

▲The memoir "The Room Where It Happened" by former National Security Advisor John Bolton, published by Simon & Schuster

[Asia Economy Reporter Kwon Jae-hee] The giant American media company ViacomCBS has agreed to sell its publishing house Simon & Schuster to the German media company Bertelsmann, the Wall Street Journal (WSJ) reported on the 24th (local time). The sale price is known to be over $2 billion (approximately 2.2 trillion KRW).

With this deal, Bertelsmann will own Simon & Schuster in addition to its own publishing house Penguin Random House, becoming a massive publisher that sells one-third of all books sold in the United States.

Simon & Schuster has published former President Trump's memoir "Too Much and Never Enough," former National Security Advisor John Bolton's "The Room Where It Happened: A White House Memoir," among others. It has also published numerous books by world-renowned bestselling authors such as Stephen King, Bob Woodward, Dan Brown, and John Grisham.

Penguin Random House is known for publishing former U.S. President Barack Obama's memoir "A Promised Land" and his wife Michelle Obama's autobiography "Becoming."

A source familiar with the matter said, "No final agreement has been reached yet, and there is a possibility that negotiations could break down."

ViacomCBS stated that it will invest the proceeds from the sale of Simon & Schuster into its streaming video services. ViacomCBS, formed by the merger of Viacom and CBS in 2019, plans to launch the online streaming service (OTT) "Paramount+" next year.

This year's book sales have been strong due to high interest in political memoirs, despite limited options for other entertainment such as movies and theme parks amid the COVID-19 pandemic. According to NPD BookScan, which tracks book sales, the number of printed books sold from January to September this year increased by 6.4% compared to the previous year.

Penguin Random House publishes in about 22 countries, and according to NPD BookScan, as of October 24, it accounts for 25% of all printed books sold in the U.S. Simon & Schuster accounts for 9.1%.

The merger between the two companies is expected to raise their market share in the U.S. to about 34%.

Some voices express concern over the emergence of a large publisher that accounts for about one-third of the publishing market. Richard Payne, a famous New York literary figure, said, "There is concern that this could lead to an abnormal obsession with bestsellers," adding, "The publishing industry is like baseball; minor leagues are also necessary."

Lorraine Shanley, president of publishing industry consultancy Market Partners International, also said, "If Penguin Random House acquires Simon & Schuster, it will become increasingly difficult for small publishers as well as other large publishers to compete."