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CNBC: Justice Department Files Antitrust Suit to Block $2 Billion Merger of Penguin Random House, Simon & SchusterNovember 02, 2021
The Biden Administration filed an antitrust suit against Penguin Random House to block the publisher’s US$2.175 billion merger with its rival Simon & Schuster. The DOJ said that the deal would make Penguin the largest publisher in the country and give them “outsized influence” over the what was published and how much authors are paid. The two publishers said they will “vigorously” fight the suit and that the publishing industry will be a competitive environment as a result of the deal. “DOJ’s lawsuit is wrong on the facts, the law, and public policy,” Penguin Random House’s lead trial attorney Daniel Petrocelli said. “Importantly, DOJ has not found, nor does it allege, that the combination will reduce competition in the sale of books.”
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