Penguin Random House and Simon & Schuster merger deal dropped


The $2.2 billion deal to merge Penguin Random House and Simon & Schuster has collapsed, Penguin's owner Bertelsmann said on Monday.
The Justice Department filed a lawsuit in November 2021 trying to stop the deal, arguing it would lead to less competition for highly-anticipated books and lower advances for authors. In late October, a U.S. judge agreed and blocked the planned merger. Bertelsmann, a German media group, said it would appeal the decision, but on Monday released a statement stating it "will advance the growth of its global book publishing business without the previously planned merger of Penguin Random House and Simon & Schuster."
Penguin, the world's largest book publisher, will now have to pay Paramount Global, Simon & Schuster's owner, a $200 million termination fee, The Guardian reports. In its own statement on Monday, Paramount called Simon & Schuster "a non-core asset. It is not video-based and therefore does not fit strategically within Paramount's broader portfolio."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Author Stephen King, whose publisher is Simon & Schuster, testified during a hearing in August against the deal. "You might as well say you're going to have a husband and wife bidding against each other for the same house. It's kind of ridiculous," King said. "Consolidation is bad for competition."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
The app tackling porn addiction
Under the Radar Blending behavioural science with cutting-edge technology, Quittr is part of a growing abstinence movement among men focused on self-improvement
-
Magazine solutions - August 29, 2025
Puzzles and Quizzes Issue - August 29, 2025
-
Magazine printables - August 29, 2025
Puzzles and Quizzes Issue - August 29, 2025
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
A potential railway megamerger raises monopoly questions
The Explainer Union Pacific and Norfolk Southern would create the country's largest railway operator
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year