The agreement between Paramount Global and KKR to purchase the Simon & Schuster publishing house has been signed. Jonathan Karp, head of the publishing house, said in the press release announcing the news: “With KKR’s support, we look forward to collaborating on new strategies that will enhance our ability to provide readers with a wide variety of books and offer authors the best possible publication they deserve.
The figure behind the deal is $1.62 billion, which will be paid to Paramount Global through an all-cash transaction. In this way, Simon & Schuster will become an autonomous private company, still led by Jonathan Karp, president and CEO and Dennis Eulau, COO and CFO.
Simon & Schuster was founded in 1924 and publishes around 2,000 books a year, with internationally successful authors such as Stephen King and Bob Woodward. Through this purchase, KKR intends to strengthen its media and content expertise, supporting the expansion of its growth internationally.
“We are pleased to have reached agreement on a transaction that delivers excellent value to Paramount’s shareholders while also positioning Simon & Schuster for its next phase of growth with KKR. The proceeds will give Paramount additional financial flexibility and a greater ability to create long-term shareholder value while reducing our balance sheet,” said Paramount Global President and CEO Bob Bakish.
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