(CelebrityAccess) — Media and content giant Bertelsmann announced plans for a multi-billion dollar deal to acquire the publishing house Simon & Schuster from media company ViacomCBS.
Following the acquisition, which is worth a reported $2.175 billion, will see the storied publishing house join Bertelsmann’s existing publishing portfolio, which already includes Penguin Random House.
According to Bertelsmann, they will pay cash to close the deal and Simon & Schuster will continue to be managed as a separate publishing unit under the Penguin Random House umbrella following the acquisition.
Jonathan Karp, President & CEO of Simon & Schuster, and Dennis Eulau, COO and CFO, will continue in their leadership roles at Simon & Schuster.
The deal expands Bertelsmann’s publishing footprint in the U.S., which is Simon & Schuster’s second largest market internationally.
Simon & Schuster employs around 1,500 people worldwide and generated revenues of $814 million in 2019. It publishes works from well-known authors and public figures including Hillary Clinton, John Irving, Stephen King, and Bob Woodward.
“Following the full acquisition of Penguin Random House in April this year, this purchase marks another strategic milestone in strengthening our global content businesses, which include Penguin Random House, the Fremantle TV production business, and the BMG music division. The book business has been part of Bertelsmann’s identity since the founding of C. Bertelsmann Verlag more than 185 years ago and has lost none of its appeal to this day. Bertelsmann continues to be one of the world’s leading creative companies with annual investments in content of around €6 billion,” said Thomas Rabe, Chairman & CEO of Bertelsmann.