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 […]
M&A
With Its Stock Languishing, Endeavor Awaits Proposal From Controlling Shareholder Silver Lake to Go Private Again
It took Endeavor multiple attempts before they executed their 2021 public offering, at a modest $24 a share, though private equity company Silver Lake retained a dominant and controlling stake. But the market has been unimpressed, particularly as Endeavor pushed through a merger between their Ultimate Fighting Championship and World Wrestling Entertainment. The stock went from a high of nearly $35 a share at the end of 2022 to less than $18 a share earlier this week. Which led to Endeavor’s announcement Wednesday afternoon that it would explore a sale or sales: “Given the continued dislocation between Endeavor’s public market […]
Acquisitions: PRH UK Buys Hardie Grant UK
Penguin Random House UK has acquired Hardie Grant UK. Hardie Grant’s two imprints, Hardie Grant UK and Quadrille, will continue operating and report to Ebury managing director Joel Rickett. Managing director Stephen King will leave at the end of 2023 and finance director David Ersapah will depart in July 2024. The Bookseller reports that there are no other plans for layoffs. At Hardie Grant, there will be no changes to the company in other territories. In a release, PRH UK ceo Tom Weldon said, “We are excited about the impact of adding Hardie Grant UK to Penguin Random House and […]
KKR’s Purchase of S&S “Doesn’t Have to be a Blowout Deal”; Attracting Talent and Having Employees Act As Owners Can Drive Success
Journalist Megan Greenwell — who is writing a book on private equity for Dey Street Books titled VAMPIRE COUNTRY — interviews KKR’s co-head of global private equity Pete Stavros on the firm’s pending acquisition of Simon & Schuster. In contrast to facile clickbait like the Atlantic’s recent piece, Greenwell gets details from Stavros about KKR’s expectations, and the workings of their employee ownership plan. Broadly, Stavros says, “We would not invest in a company where the strategy is to get profit dollars up by firing people. We just wouldn’t do that…. we’re not buying into an investment thesis where we’re […]
Francisco Partners Joins HIG Capital In RBmedia Purchase
The planned sale of RBmedia by KKR to H.I.G. Capital closed last week. In the announcement, it was disclosed that another tech-focused private equity firm, Francisco Partners, had “partnered” with H.I.G. Capital in the purchase. Francisco Partners executives Matt Spetzler and Jason Brein said in the release: “We are excited to partner with H.I.G. to help usher in RBmedia’s next phase of growth as the audiobook industry continues to expand. Francisco Partners has extensive experience in audio and content publishing, technology and media and we believe audiobooks are at a positive inflection point. Working together, our capital and operating insights […]
As Expected, Majority Control of CAA Sold to Pinault Family’s Artemis by TPG
In alignment with previous news reports, private equity firm TPG will exit their 13-year involvement at CAA in a deal to sell their 53 percent stake to Artemis, the Pinault family’s investment company. (According to earlier reports, the deal is worth approximately $7 billion.) The transaction is expected to be completed later this year, “subject to the satisfaction of customary closing conditions.” CAA’s leaders Bryan Lourd, Kevin Huvane, and Richard Lovett have “each made long-term commitments to continue leading the agency and will remain” as co-chairs. After the deal closes, Lourd is expected to be named CEO. Singapore-based investment firm […]