CLOSING THE BOOK

Penguin Random House Blocked From Buying Rival Simon & Schuster

The dashing of the planned $2.2 billion merger is a win for the government’s increased focus on antitrust efforts.

A federal judge on Monday ruled in favor of the Justice Department’s bid to halt a planned $2.2 billion merger between rival publishers Penguin Random House and Simon & Schuster, marking a victory for the government’s recent antitrust efforts. Judge Florence Pan agreed that it would serve to “substantially… lessen competition in the market” if Penguin Random House—the world’s largest publishing company—were to acquire its fellow book giant. The Biden administration’s challenge focused on the potential harm posed to authors’ earnings and the range of books published in the United States. Author Stephen King was among a number of writers and agents called to testify for the government during the three-week trial earlier this year. In response to a Penguin Random House attorney’s insistence that the merger would be pro-competitive—with the two companies’ imprints continuing to compete with each other—King scoffed, “You might as well say you’re going to have a husband and wife bidding against each other for the same house. It’s kind of ridiculous. Consolidation is bad for competition.”