NY Times: “Penguin Random House Defends Effort to Buy Simon & Schuster”

From The NY Times:

Penguin Random House, the largest book publisher in the United States, said in a court filing on Monday that its plan to buy a competitor, Simon & Schuster, would be a boon for the industry, benefiting authors, booksellers and readers.

The Justice Department has disagreed. Last month, it sued to stop the $2.18 billion acquisition, as the Biden administration takes a more skeptical view of corporate consolidation across industries.

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In the joint response filed on Monday in the United States District Court for the District of Columbia, Penguin Random House and Simon & Schuster said the government’s argument misunderstands the way the publishing industry functions.

“The government wants to block the merger under the misguided theory that it will diminish compensation to just the highest-paid authors,” said Daniel Petrocelli, a lawyer representing Penguin Random House and its parent company, Bertelsmann, in an interview on Monday. “That is legally, economically and factually wrong, and it ignores the vast majority of authors who will indisputably benefit from the transaction.”\

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Direct to Court Filing (Response)

See Also: Additional Court Filings

See Also: Justice Department Sues to Block Penguin Random House’s Acquisition of Rival Publisher Simon & Schuster (November 2, 2021)

Filed under: Interviews, News, Profiles, Publishing