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DOJ Secures Permanent Injunction Blocking Publishing House Merger

The DOJ obtained a permanent injunction suspending the proposed acquisition of Simon & Schuster by Penguin Random House.

The DOJ sued to stop the merger in November 2021 pursuant to Section 7 of the Clayton Act. The U.S. District Court for the District of Columbia ruled that the proposed $2.2 billion merger would "substantially lessen competition in the market for the U.S. publishing rights to anticipated top-selling books." The court's opinion is temporarily under seal to allow the parties to review for confidentiality.

Assistant Attorney General of the Antitrust Division Jonathan Kanter stated that the proposed merger "would have reduced competition, decreased author compensation, diminished the breadth, depth and diversity of our stories and ideas, and ultimately impoverished our democracy."

Primary Sources

  1. DOJ Press Release: Justice Department Obtains Permanent Injunction Blocking Penguin Random House's Proposed Acquisition of Simon & Schuster

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Tags

Regulated Activities
Enforcement Procedures M&A and Corporate Form Transactions
Regulated Entities
Commercial Companies
Body of Law
Antitrust
Jurisdiction
US - Federal
Organization
Other Author Organizations
Sub-Author
DOJ