The tussle for Simon & Schuster reached its conclusion, with Bertelsmann owned Penguin Random House (PRH) emerging as the winning bidder. The price tag reached $2.2bn (some 3 x revenue and 15 x profit) in cash for owner ViacomCBS. The deal remains subject to regulatory approval, which may hold up completion until late 2021. The combined company will have 30% of the US book market with a far higher concentration in certain sectors such as political memoirs and literary fiction.
The deal will be funded from Bertlesmann cash reserves. The company owns TV group RTL, Gruner & Jahr magazines in addition to PRH. The company is believed to derive some one-third of revenue from Germany and perhaps 25% from the US. It is controlled by three family trusts and reported first-half revenues down 9% to €7.8bn with EBITDA margin cut from 15% to 13%.
Additional reporting by Axel Bartholomäus
