Reuters reports PRH’s agreement to buy S&S set to fall through

News agency Reuters is reporting that Penguin Random House’s agreement to buy Simon & Schuster is set to fall through today. 

The $2.2bn sale was blocked by the US Department of Justice last month on antitrust grounds. PRH said it planned to appeal, but Reuters reports Bertelsmann, which owns PRH, was unable to convince Paramount Global, S&S’ current owner, to help launch an appeal and extend the deal contract before its expiration date, Monday 21st November. The New York Times is also reporting Paramount has decided to allow the purchase agreement to expire.

If the deal falls through Bertelsmann will owe Paramount a $200m break-up fee. 

Reuters said the sources it spoke to requested anonymity ahead of official announcements this week.   

If the deal does collapse Paramount will be free to sell S&S to a new buyer.

The Bookseller has contacted Paramount, Bertelsmann and S&S for comment. PRH declined to comment.