Private equity firm KKR completes acquisition of Simon & Schuster from Paramount

Global investment firm KKR has successfully completed the previously announced acquisition of Simon & Schuster from Paramount Global in a $1.62bn (£1.33bn) all-cash transaction. 

Simon & Schuster is now a standalone private company, and the only independent major trade publisher in the US. It continues to be led by president and c.e.o. Jonathan Karp and his executive team.

Karp said: “With KKR’s resources and support, we intend to become an even stronger company and a more dynamic force in our industry, while still maintaining our well-established record of editorial excellence and independence, and our unceasing focus on doing the best for our authors and their books. I know that we will build on that legacy going forward.”

Ted Oberwager, a partner leading the gaming, entertainment, media and sports verticals within KKR’s Americas Private Equity business, added: "The company is in a strong position to capture the opportunity ahead, and we look forward to building on Simon & Schuster’s reputation for delivering engaging and compelling books to readers all over the world."

KKR is supporting Simon & Schuster in implementing a "broad-based employee ownership program" to build engagement and an ownership culture among employees.

Richard Sarnoff, chairman of media at KKR, added: “In recent years Simon & Schuster has built an impressive track record of commercial success to go along with its 100-year legacy of publishing excellence. We are thrilled to work on the next phase of Simon & Schuster’s growth with Jon and the entire Simon & Schuster team. As part of that we are delighted employees will now have the opportunity to participate in the benefits of ownership in the company."

Bob Bakish, president and c.e.o. of Paramount Global, commented: “After a highly competitive process, this is an ideal outcome for both Simon & Schuster and Paramount. Simon & Schuster is positioned well for future growth, and the transaction itself demonstrates significant value capture for Paramount."