Publishing heavyweight Simon & Schuster has been acquired by private equity firm KKR for $1.6 billion.
This move concludes a prolonged search by its parent company, Paramount Global, which has been seeking a buyer since 2020.
A prior $2.2 billion bid from Penguin Random House was halted due to regulatory issues, with concerns about reduced opportunities for authors.
Notably, Stephen King testified against this sale, reflecting the US government's stricter stance on competition under president Biden.
Founded in 1924, Simon & Schuster boasts a rich history, with iconic titles such as Catch-22 and works by the aforementioned Stephen King.
The publisher, which employs over 1,600 people worldwide, is among the US's 'big five' publishers.
KKR, already invested in the digital books platform Overdrive, plans to broaden Simon & Schuster's distribution and introduce an employee share scheme.
Paramount Global's CEO, Bob Bakish, highlighted that the sale proceeds would enhance the company's financial agility.
This boost is timely, as Paramount faces stiff competition in streaming and reported a drop in quarterly sales and a decline in advertising revenues.