Bertelsmann to Buy Simon & Schuster for $2.1 Billion in Cash

German media giant Bertelsmann has set a deal with ViacomCBS to acquire publishing unit Simon & Schuster for $2.17 billion in cash.

Bertelsmann, owner of publishing giant Penguin Random House, was seen as a logical contender for Simon & Schuster. ViacomCBS announced its intent to sell the publishing arm earlier this year as part of the company’s post-merger streamlining to focus on content investment.

Simon & Schuster will operate as a separate unit under the Penguin Random House umbrella. Jonathan Karp, president-CEO of Simon & Schuster, and Dennis Eulau, chief operating officer and chief financial officer, will continue to lead the division. The deal is expected to close next year.

ViacomCBS said it would use the proceeds from the sale to pay down debt, fund its dividend and to invest in “strategic growth priorities.” ViacomCBS chief Bob Bakish in March told investors that Simon & Schuster had attracted interest from 25 bidders. Bertelsmann was believed to be the frontrunner from the start.

Simon & Schuster itself has more than 30 imprints for adult, children, audio and international publications. Top authors on the current roster include Stephen King, Doris Kearns Goodwin and Jason Reynolds.

More to come