Paramount said on Monday it had reached a deal to sell Simon & Schuster, one of the biggest and most prestigious publishing houses in the United States, to the private-equity firm KKR, in a major changing of the guard in the books business.
The deal, for $1.62 billion, will put control of the cultural touchstone behind authors like Stephen King and Bob Woodward in the hands of a financial buyer with an expanding presence in the publishing industry.
While private equity investors have had a significant footprint in the book business — different firms have owned literary agencies, publishing houses and the retailer Barnes & Noble — the acquisition of one of the largest publishers in the country vastly increases the hold of financial interests in the business.
Richard Sarnoff, who leads KKR’s media, entertainment and technology group, is a familiar name to many in the publishing industry and his involvement is encouraging, said several publishing executives on Monday.
Mr. Sarnoff has held multiple positions at Bertelsmann, the company that owns Penguin Random House, and served as chairman of the Association of American Publishers, a trade group.
Persons:
Simon, Schuster, Stephen King, Bob Woodward, Noble, Richard Sarnoff, Sarnoff
Organizations:
Paramount, KKR, Barnes, Bertelsmann, Random, Association of American Publishers
Locations:
United States