S&S reportedly closing in on deal

In the US, numerous news outlets are reporting the sale of Simon & Schuster (S&S) will be announced as soon as this week, reports Publishers Weekly.

Reuters is reporting the final three bidders are HarperCollins, private equity firm Kohlberg Kravis Roberts (KKR), and Richard Hurowitz of investment firm Octavian & Company, who is backed by Abu Dhabi sovereign wealth manager Mubadala Investment Co.

The New York Times reported HarperCollins and KKR as the final bidders, and the Wall Street Journal reported that KKR is in ‘advanced talks’ to buy the publisher. The purchase price is said to be around US$1.65 billion (A$2.5b), less than the US$2.175 billion (A$3.3b) Penguin Random House had agreed to pay before the Justice Department blocked the acquisition last year.

According to Publishers Weekly, agents and authors seem to be hoping one of the investment firms is successful in acquiring S&S, to keep the Big Five intact. KKR recently reached an agreement to sell audiobook publisher RBMedia for a reported US$1 billion (A$1.52b).

Category: International news