Simon & Schuster sold for $1.6 billion

Private equity firm KKR has agreed to buy the New York publishing giant from its owner Paramount Global Photo: Jenny Kane

Book publisher Simon & Schuster was sold for $1.6bn (£1.25bn).

Private equity firm KKR has agreed to buy the New York-based publishing giant from its owner Paramount Global, the companies confirmed on Monday.

Simon & Founded in 1924, Schuster has published over 36,000 titles, including Colleen Hoover's romance novel It Ends With Us.

The company, which employs more than 1,600 people worldwide, is one of the so-called Big Five American Publishers, which includes Penguin Random House, Macmillan and HarperCollins.

After the sale is completed, the company will operate as a stand-alone business , and Jonathan Karp will remain CEO.

Mr. Karp said: “With the support of KKR, we look forward to working together to develop new strategies that will increase our ability to provide readers with a large number of books and provide authors with the best publications, which they can get.

Proceeds from the sale will give Paramount «additional financial flexibility,» according to chief executive Bob Babkish, as the media and entertainment conglomerate looks to reduce its debt as it makes a costly transition from broadcast television to online streaming services.

< p >KKR said it plans to expand the publisher's range of genres and categories while creating a «ownership culture» by allowing employees to participate in the equity scheme.

Richard Sarnoff, Chairman of KKR, said: “We see a compelling opportunity to help Simon & Schuster has become an even stronger partner for literary talent by investing in expanding the company's capabilities and distribution networks across different environments and markets while maintaining 99 years of editorial independence.»

The deal, which is subject to regulatory approval, could put an end to Paramount's three-year search for a buyer for the book company.

She previously tried to sell Simon & In 2020, Schuster will compete with Penguin Random House, the world's largest book publisher, for $2.2 billion.

The merger, however, was blocked last year by US regulators who felt it would significantly reduce competition for top-selling books. and result in lower upfront fees for creators.

Penguin, which is owned by the German media group Bertelsmann, was required to pay a $200 million fine to Paramount for terminating the deal after the deal fell through.