The Clap
Paramount Global (NASDAQ: PARA) is ending the $2.18 billion deal to sell Simon & Schuster, the fourth largest book publishing group in the US, to Bertelsmann SE, after a judge ruled against the deal.
What
The judge ruled against the deal as it will give Penguin Random House, a subsidiary of Bertelsmann SE and the largest publishing group in the US, significant leverage over author payouts.
So What
The failure of the deal opens the door for Paramount to seek another buyer for Simon & Schuster, one with potentially fewer legal issues.
Now What
Due to the deal’s collapse, Bertelsmann will pay Paramount a $200 million break-up fee.
