Penguin Random House Gets Blocked

A federal judge blocked Penguin Random House from acquiring Simon and Schuster for $2.18 billion, saying that it would “substantially lessen competition” for publishing rights. Assistant Attorney General Jonathan Kanter argued that the merger would have decreased author compensation and that writers would likely see lower advances if the deal went through. Penguin Random House argued that owning Simon & Schuster’s titles would make them more available to consumers and be more lucrative for authors.