After the close of the market on Monday, Simon & Schuster confirmed the completion of their sale to KKR for $1.62 billion. S&S ceo Jonathan Karp wrote to employees:
“I believe our relationship with KKR will enable us to become an even greater version of what we already are: a company that strives for–and succeeds at–attracting and keeping a roster of the most talented authors, with a workforce of dedicated and highly motivated professionals; a pre-eminent publisher, for all kinds of readers, in all formats; a company that takes risks, seizes opportunities and cherishes innovation in its publishing and business practices.
“With KKR’s resources and support, we intend to become an even stronger company and a more dynamic force in our industry, while still maintaining our well-established record of editorial excellence and independence.”
Notably, “Our new parent company will enable Simon & Schuster to be the first American publisher of our size in which employees share ownership. Although many of us already feel ownership of our work, by sharing in ownership of the company itself, we will be a magnet for the best publishing talent and have more of a voice in charting our collective future. We will share information about our progress and our challenges more regularly.”
KKR partner Ted Oberwager, who leads their gaming, entertainment, media and sports verticals within the Americas Private Equity business, said in the release: “The company is in a strong position to capture the opportunity ahead, and we look forward to building on Simon & Schuster’s reputation for delivering engaging and compelling books to readers all over the world.”
It was almost three years ago that Penguin Random House made a deal to acquire S&S for $2.175 billion, before the US Federal District Court for Washington, DC blocked the sale a year ago.