PE Firm KKR Advances Towards $1.65B Deal for Simon & Schuster, AI Threats to Publishing Industry Loom Large
Portfolio Pulse from Anusuya Lahiri
Private equity firm KKR & Co Inc is in advanced talks to acquire Simon & Schuster for $1.65 billion. The deal would conclude Paramount Global's attempt to sell the publisher after a previous deal with Penguin Random House was quashed. Simon & Schuster had a strong 2022, with 19% revenue growth to $1.18 billion and 16% operating profit growth to $248 million. The deal comes amid declining print book sales and threats from AI technology.
August 04, 2023 | 3:22 pm
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POSITIVE IMPACT
KKR is in talks to acquire Simon & Schuster for $1.65 billion. If successful, this could potentially add a significant asset to KKR's portfolio.
The acquisition of Simon & Schuster could potentially add a significant asset to KKR's portfolio. Given Simon & Schuster's strong performance in 2022, this could be a positive move for KKR.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Paramount Global's attempt to sell Simon & Schuster may conclude with a deal with KKR. This could potentially free up resources for Paramount.
The sale of Simon & Schuster could potentially free up resources for Paramount Global. This could be a positive move for the company, especially given the current threats to the publishing industry from AI technology.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100