After three months of deliberations, an American court rejected a monopoly deal between the Penguin Publishing House, and the Simon and Schuster Publishing House, whose material value was estimated at $ 2. 2 billion, in order to prevent monopoly.
In August 2022, the US Department of Justice turned to international author Stephen King to testify on its side against the proposed merging procedure that the ministry had rejected. This legal war in the American publishing industry had just begun.
According to the media, the Ministry of Justice rejected the proposal based on evidence that the merger will probably result in the authors of the best-selling books being expected in small introductions, meaning that the authors who have spent years working on their manuscripts will receive less compensation for their efforts. This also applies to Stephen King and a relatively small group of young writers.
One of the key issues in the Ministry of Justice case is the proposed acquisition of Simon & Schuster by Penguin Random House for $2.
2 billion, it is against the law; The Ministry of Justice discovered an email sent by Simon & Schuster CEO Jonathan Carb that stated: “I am completely sure that the Ministry of Justice will not permit Penguin Random House to purchase, but this is on the assumption that it is still We have the Ministry of Justice.” in order to accomplish this goal.
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After a series of deliberations in the Washington County Court Hall of the Colombia Federal Court, Judge Florence issued a final decision in this case to reject this deal and integration..
An American court rejects a $ 2.2 billion publishing sector merger after three months.
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