Rakuten has an agreement to sell OverDrive to private equity firm KKR, under the direction of Richard Sarnoff, with the deal expected to close by the end of January. The digital reading and media platform for libraries and schools should pair well with audiobook publisher and platform RBmedia, which KKR bought in 2018. (RBmedia also has a platform that provides digital content to libraries.) The private equity firm bought both OverDrive and RBmedia through its KKR Americas XII Fund. The purchase price was “determined rationally by mutual agreement of both parties” but not disclosed for now. Rakuten said in their […]
M&A
2019: The Year in Mergers and Finance
The year’s mergers and acquisitions ended with a big deal that really wasn’t a big deal: The announcement of Bertelsmann‘s agreement to acquire the remaining 25 percent of Penguin, for $665 million, pending regulatory approvals. When Penguin and Random House first came together in 2013 — with no money changing hands — it was a merger, of near equals, but over time and now definitively, it became a full acquisition. Penguin Random House itself was an active buyer all year, with a particular emphasis on children’s publishing, and the company has pledged to continuing growing through further acquisitions. One of […]
Bertelsmann to Buy Pearson’s Remaining Stake in Penguin Random House for $675 Million
After resisting a full buyout of Pearson’s minority share in Penguin Random House in 2017, Bertelsmann is exercising their option to buy Pearson’s remaining 25 percent stake in the book publishing joint venture at the soonest opportunity. They will pay $675 million, subject to another round of regulatory approvals, with the deal expected to close in the second quarter of 2020. An analyst at Barclays commented, “The price is in the ballpark of what we expected — a little better.” The latest purchase is based on an enterprise value for PRH of $3.67 billion, up from the $3.55 billion valuation […]
ICM Sells A Stake to Private Equity
ICM Partners, which bought its freedom in 2012 from controlling investor Rizvi Traverse Management, has once again sold a stake in the agency. This time, they have a sold a minority one-third share in the agency to Crestview Partners, for approximately $150 million. CEO Chris Silbermann told Variety some of that money would be used to “reward” employees across the agency, along with buying out some current equity holders. The press release indicates that “all ICM Partners employees, including assistants and support staff, will benefit financially from the deal.” “It will also help fund acquisition of other agencies and related […]
DOJ Ready to Deal on Cengage McGraw-Hill Merger, Sources Say
The DOJ plans to approve the merger of Cengage and McGraw-Hill, if the companies agree to divest some overlapping assets, unnamed sources told the NY York Post. “There’s going to be a deal. The parties are doing the work so they understand the package that needs to be offered,” the source said. “Any areas of overlap,” such as business textbooks, “will have to be sold to get Justice’s stamp of approval, sources added.” A representative for the companies declined to comment on the story. According to the companies’ financials, before any divestitures the combined entity would have $3.16 billion in […]
Australian Antitrust Commission Has Some Concerns About Cengage McGraw-Hill Merger
The Australian Competition & Consumer Commission (ACCC) released a 17-page statement of issues regarding the planned merger of Cengage and McGraw-Hill, the result of a review begun in September. The report outlines two primary “preliminary concerns”: First, that the merger will result in “higher prices, reduced quality or a more limited product range for students in Australia”; and second, that it will “further reduce the already limited number of major publishers with whom higher education authors can publish their works.” Interested parties have until January 20 to submit comments and information, with a final decision due from the commission March […]