An interview with Quarto’s non-executive chairman Andy Cumming removes some of the mystery around the company’s bizarre governance and management changes in 2018. It was clear before last May’s fateful May annual meeting that their debt load of $64 million was unsustainable, with the company saying in March, “The group is therefore looking at all options to strengthen the balance sheet and will keep all stakeholders updated with its progress.” The solution, former ceo Marcus Leaver now says, was selling additional shares to raise capital — which would have diluted existing shareholders, and that sparked founder and former leader Laurence […]
Finance
Endeavor Files for IPO
Endeavor Group, the sprawling entertainment and representation conglomerate that is the parent of William Morris Endeavor, filed documents with the SEC for a public offering of shares. They intend to trade on the New York Stock Exchange under the symbol EDR, and the proposition is perhaps more reminiscent of a tech IPO than a regular offering. The company has grown quickly through a series of acquisitions, and is losing money at a good clip — with losses from continuing operations before taxes over the past three years of about $793 million. They carry debt of more than $4.6 billion and […]
Sourcebooks Sells Minority Share to Penguin Random House
Sourcebooks has sold a 45-percent stake in the company to Penguin Random House, which will serve as “a collaborative investor” in the company. Sourcebooks founder and ceo Dominique Raccah will work directly with PRH US ceo Madeline McIntosh on the collaboration, with McIntosh and PRH’s Nina von Moltke to fill two of the five seats on a newly-created Sourcebooks board of directors. (Raccah, her husband Ray Bennett, and Sourcebooks svp Barbara Briel hold the other seats.) For now there will be “no changes in [Sourcebooks’] leadership, management, publishing autonomy, or entrepreneurial culture,” the joint announcement says, but the two companies […]
Wiley to Buy Knewton
Just days after the Cengage and McGraw-Hill merger announcement, Wiley announced a deal to buy the assets of ed-tech firm Knewton, in a transaction expected to close by the end of the month. The price was not disclosed — though Knewton was reportedly being offered at a “fire sale” price, with EdSurge saying, “There were other buyers bidding for Knewton’s assets, with the transaction prices discussed in the $10 million range.” One of the first big ed-tech companies, New York-based Knewton had raised over $180 in funding. “No industry analyst we spoke with believes the sale price was anywhere near […]
Acquisitions: PRH Buys Salamandra, Scholastic’s Film Investment, and More
Already the world’s largest Spanish-language publisher, Penguin Random House continues to build on that position with another acquisition, agreeing to acquire Barcelona-based Ediciones Salamandra from Sigrid Kraus and Pedro del Carril. The company has over 500 authors on their list. Kraus will remain as publishing manager, “working closely” with PRH Grupo Editorial ceo Núria Cabutí. PRH ceo Markus Dohle underscores in the announcement, “Penguin Random House strongly believes in the global growth potential of the Spanish-language market, and we very much look forward to bringing Ediciones Salamandra’s authors to an even wider readership.” Pedro del Carril adds: “Of all the […]
Baker & Taylor to Abandon Bookstore Distribution
Baker & Taylor’s parent company Follett announced a “strategic shift” in which B&T will exit the business of wholesaling books to retailers. “Exiting wholesale book distribution will allow us to align our resources, technology and people to do what we do best – helping public libraries support the communities they serve.” B&T president Dave Cully says in the release. “We will be working closely with our existing customers and partners to ensure a smooth transition during this change.” Ultimately, however, unsold stock “will be returned to our publishers.” They told accounts in an email they expect to “complete our exit […]