German media conglomerate Bertelsmann announced Wednesday that its Penguin Random House division, the largest publisher in the U.S., will buy rival publisher Simon & Schuster from parent company ViacomCBS in a $2.17 billion cash deal. The deal is expected to close in 2021, pending regulatory approval. The acquisition of Simon & Schuster would decrease the publishing industry’s “Big Five” down to just four companies, with HarperCollins, Hachette Book Group, and Macmillan remaining. “Simon & Schuster strengthens Bertelsmann’s footprint globally, and (particularly) in the U.S., its second-largest market,” the company said in a statement. Penguin Random House Chief Executive Markus Dohle said that under the new deal, Simon & Schuster will still have editorial independence and can continue competition with Penguin Random House for book deals. But others aren’t so sure. Bertelsmann rival HarperCollins said that the deal is a strategic attempt at “buying market dominance as a book behemoth.”
