Penguin Random House’s $2.18 billion acquisition of rival book publisher Simon & Schuster Inc. was blocked by federal judge Florence Y. Pan, who found the merger would lessen competition.
Simon & Schuster is the fourth largest book publisher, owned by Paramount Global. “The court finds that the United States has shown that ‘the effect of [the proposed merger] may be substantially to lessen competition’ in the market for the US publishing rights to anticipated top-selling books,” the judge wrote in a two-page order. The reasons for the decision will be released later, after the publishers agree on what confidential information should be redacted, the judge said.
Penguin Random House said in a statement that it “strongly” disagrees with the decision and would seek an expedited appeal immediately. “Today’s decision protects vital competition for books and is a victory for authors, readers, and the free exchange of ideas,” Assistant Attorney General for Antitrust Jonathan Kanter said in a statement.
HarperCollins Publishers LLC, owned by News Corp., also sought to buy Simon & Schuster and the company’s chief executive officer said the publisher was still interested in a tie-up if Penguin’s bid was blocked.
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