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Summary:

News Corp, which owns book publisher HarperCollins, is reportedly in “preliminary” talks to buy CBS’s Simon & Schuster, according to a report in the News Corp-owned Wall Street Journal.

Just three weeks after Random House and Penguin announced that they will merge to form the world’s largest book publisher, News Corp, which owns the book publisher HarperCollins, is reportedly in talks to acquire CBS’s Simon & Schuster. The “preliminary” talks were reported by the News Corp-owned Wall Street Journal, which says News Corp had “expressed interest in” buying Simon & Schuster.

Unidentified sources “cautioned that a deal isn’t imminent.”

Simon & Schuster and HarperCollins declined to comment.

It seems clear that News Corp CEO Rupert Murdoch is in a book publisher-buying mood: News Corp. had previously expressed interest in buying Pearson’s Penguin, right after Random House and Penguin’s talks to merge became public. News Corp is in the process of spinning off its publishing unit, including HarperCollins, into a separate company, and Murdoch recently said that the company will provide more details about the spinoff “by the end of the calendar year.”

Simon & Schuster’s revenues totaled $787 million in 2011, and according to CBS’s most recent earnings report, digital sales (ebook and audiobooks) now make up 21 percent of the publisher’s total sales. News Corp has not released details about HarperCollins revenues in recent years.

Photo courtesy of Shutterstock / Thomas Bethge 

  1. Reblogged this on The Business Side of Books and commented:
    Remember when a first time author would get discovered and their book would be all the rage? If this merger happens, you can kiss that good bye and say hello to a world where books are published by the Snooki’s of the world.

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    1. Why would this merger be the catalyst for that? It’s already true at all major publishing houses, and that’s why self-publishing has exploded and given readers, among many others, the 50 Shades of Grays of the world. Don’t be so dramatic (and frankly, falsely nostalgic: first-time authors getting discovered and made into “the rage” occurred about 1% of the time in the history of reading. That will continue to be true, through one channel of distribution or the as-legitimate-and-more-profitable other).

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