Befitting the pandemic year, 2020 recorded only modest merger activity, as most potential buyers focused on preserving liquidity over acquisitions. In the end, the year was as notable for what didn’t happen as what did. Cengage and McGraw Hill called off what would have been the year’s biggest merger after running into resistance from the Department of Justice and other regulators. (Both are left with significant debt to pay down.) Barnes & Noble Education spent all year busily not getting acquired: They explored “strategic” options for months and concluded that the company was doing fine on its own — which […]
M&A
Briefs
Riky Stock will join North South Books as managing director on January 1. She will focus on “strengthening transatlantic ties to the company’s head office in Zurich, Switzerland and developing a more international approach to marketing and communications.” Stock was head of the German Book Office in New York and represented the Frankfurt Book Fair in the US. (That office was recently closed.) One of the year’s unanswered questions has been what France’s Vivendi — and controlling owner Vincent Bolloré — wants from its sizable 27 percent stage in Lagardere. Reuters suggests the battle for control of the company may […]
People, Etc.
John le Carré, the pen name of David Cornwell, 89, who wrote The Spy Who Came in From the Cold, A Perfect Spy, Tinker, Tailer, Solidier Spy, and many more, died of pneumonia December 12, in Cornwall, England. Johnny Geller, his longtime agent at Curtis Brown UK, said in an announcement on Sunday night, “John le Carré was an undisputed giant of English literature. He defined the Cold War era and fearlessly spoke truth to power in the decades that followed.” Brian Tart, president & publisher of Viking Penguin, said, “It has been an honor to be John le Carré’s […]
Red Ventures Acquires Lonely Planet
Digital business platform Red Ventures has acquired travel guide publisher Lonely Planet from NC2 Media for an undisclosed amount. Lonely Planet’s leadership team will remain the same, with publisher and vp print Piers Pickard staying on in the UK. Red Ventures co-founder and ceo Ric Elias said in the release, “While the travel industry is experiencing an unprecedented downturn, we believe it will come back stronger than ever, and no brand represents the magic of the modern explorer better than Lonely Planet. By joining our travel portfolio, Lonely Planet positions us revolutionize the consumer journey for travelers, helping more people […]
The Opposition
The announcement of Penguin Random House’s agreement to acquire Simon & Schuster was met quickly with a number of statements and articles in opposition. The Authors Guild (it’s “creating a huge imbalance in the US publishing industry”) and the American Booksellers Association (it “will mean too much power over authors and readers in the hands of a single corporation”) will both ask the Department of Justice to block the deal. The Association of Canadian Publishers is asking both the Competition Bureau and the Department of Canadian Heritage to review the deal. They say the merger would “have a direct and […]
Penguin Random House to Buy Simon & Schuster for $2.175 Billion
ViacomCBS announced Wednesday morning that it has a definitive agreement to sell Simon & Schuster to Penguin Random House for $2.175 billion in cash, “from existing liquid funds.” The transaction is expected to close in 2021, with S&S ceo Jonathan Karp telling staff that will “likely” happen “in the second half of 2021 at the earliest.” It is subject to regulatory approvals — primarily in the US — and competing bidders such as HarperCollins parent News Corp. have already declared they believe “it will clearly be a serious antitrust issue.” Bertelsmann has already indicated it does not expect approval issues. […]