KKR to Acquire Simon & Schuster from Paramount Global

Paramount Global and KKR have announced the signing of a definitive agreement pursuant to which KKR will acquire Simon & Schuster for $1.62 billion in an all-cash transaction. 

“We are pleased to have reached an agreement on a transaction that delivers excellent value to Paramount shareholders while also positioning Simon & Schuster for its next phase of growth with KKR,” says Bob Bakish, president, chief executive officer, Paramount Global. “The proceeds will give Paramount additional financial flexibility and greater ability to create long-term value for shareholders, while also delivering our balance sheet.” 

After the closing of the transaction, Simon & Schuster will become a standalone private company and continue to be led by Jonathan Karp, president and chief executive officer, and Dennis Eulau, chief operating officer and chief financial officer, Simon & Schuster.  

“All of the executives at Simon & Schuster who met with KKR came away from those conversations impressed with the depth of KKR’s interest in our business and their commitment to helping us grow, thrive and become an even stronger company,” says Karp. “With KKR’s support, we look forward to collaborating on new strategies that will enhance our ability to provide readers a great array of books and to give authors the best possible publication they can receive.” 

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In addition to investing in all areas necessary to establish Simon & Schuster as a standalone entity, KKR intends to support numerous growth initiatives, including extending Simon & Schuster’s domestic publishing program across various genres and categories, expanding its distribution relationships and accelerating growth in international markets. 

“Simon & Schuster’s nearly 100-year history is a testament to the enduring value of creative expression through the written and spoken word,” says Ted Oberwager, a partner who leads the gaming, entertainment, media and sports verticals within KKR’s Americas Private Equity business. “We are thrilled to invest behind Jon and the immensely talented organization at Simon & Schuster to support their mission of delivering marquee content to readers around the world.”  

The investment builds on KKR’s deep experience investing in content-oriented media businesses, including current and prior investments in Epic Games, Mediawan, Leonine Studios, Artlist, Skydance Media, BMG and RBmedia.