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Macmillan c.e.o Don Weisberg has told a trial over Penguin Random House’s $2.2bn deal for Simon & Schuster the merger will impact author advances and reduce competition.
The US Department of Justice is attempting to block the merger, arguing it will drive down advances and leave one publisher dominant over the rest.
Weisberg took the stand at the trial in Washington DC on 8th August to describe publishing as “a business of gambling”.
According to Publishers Marketplace, Weisberg argued that spend isn’t the only factor behind a book’s success, saying: “It’s a business of gambling. The more people you have who feel great about a book, the better chance you have to succeed. If everyone in-house reads a book and loves it, it becomes a big book."
Weisberg, however, backed the government’s claim that the merger would impact author advances, conceding when questioned by Judge Florence Pan that most marketing often correlates to the highest advance.
“My guess is less competition will long term bring the advance levels down,” he said, adding that it would also influence Macmillan’s relationship with agents.
"I think inherently when you have a company the magnitude of what’s being proposed, it has to change. If I’m a smaller agent and I’m selling a book and they’re one player that’s incredibly bigger than everyone else, I think that will have an impact. They will have to change their behaviour to deal with that.”
He added that Macmillan competes in auctions most often against PRH, and “keeps an eye on Hachette’s business, since they are the closest to Macmillan in size”.
Weisberg recently announced he would be stepping down from his role as c.e.o of Macmillan, to be succeeded by Jon Yaged in early 2023.
The trial continues.