Blocking the merger potentially means future merges will be strictly investigated for not only the publishing industry but for big companies in other industries as well.įor more book-related and pop culture news, check out more on Bookstr. The Justice Department’s decision emphasizes the antitrust laws, which are meant to protect the overall market and ensure fair competition. Overall, the merger between Penguin Random House and Simon & Schuster would’ve heavily changed the publishing industry. “The proposed merger would have reduced competition, decreased author compensation, diminished the breadth, depth, and diversity of our stories and ideas, and ultimately impoverished our democracy” Assistant Attorney General Jonathan Kanter, New York Times Therefore, Jonathan Kanter of the department’s antitrust division stated, The ruling is seen as a win for both authors and readers by the Justice Department. A federal judge has blocked Penguin Random House’s proposed purchase of Simon & Schuster, agreeing with the Justice Department that the joining of two of the world’s biggest publishers could. In other words: $$$- Stephen King NovemTWEET VIA TWITTER The Impact of the Trial The proposed merger was never about readers and writers it was about preserving (and growing) PRH's market share. I am delighted that Judge Florence Pan has blocked the merger of Penguin Random House and Simon & Schuster. “Publishing should be more focused on cultural growth and literary achievement and less on corporate balance sheets.” Stephen King, New York TimesĪfter Judge Pan made the decision to block the merger, King shared his thoughts on Twitter. “Further consolidation would have caused slow but steady damage to writers, readers, independent booksellers, and small publishing companies,” he said. Through an email interview with the New York Times, he wrote, He believes it is bad for competition and even makes it harder for writers to earn money. According to Variety, King is strongly against the merger. The trial also had authors testifying including Stephen King, a best-selling horror writer whose main publisher is Simon & Schuster. However, they are against the merger, because authors would have fewer options to publish their work. Random House Tower, New York As of 2021, Penguin Random House employed about 10,000 people globally and published 15,000 titles annually under its 250 divisions and imprints. Then, executives from Hachette and HarperCollins, who are also part of the “Big Five,” testified as well. They also believe it would be more cost-saving. Executives from both Penguin Random House and Simon & Schuster stated during the trial how the merger would benefit writers.
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