Deals
Penguin’s $2.18 Billion Deal for Simon & Schuster Will Cost Authors, DOJ Says
- Justice Department says merger would reduce writer advances
- Penguin slams DOJ’s ‘artificial harm’ as unfounded speculation
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Penguin Random House’s proposed $2.18 billion acquisition of Simon & Schuster Inc. would make the top US book publisher more dominant in the marketplace, leading to lower payments to authors, the Justice Department told a federal judge Friday.
“Penguin and Simon & Schuster compete today,” DOJ lawyer John Read said in closing arguments to the agency’s federal lawsuit in Washington to block the deal. “The merger will end that competition.” He added, “We brought this case because the best protection for authors is robust competition.”