The companies said the deal is expected to close
in 2021, subject to regulatory approval. No U.S.
publisher in modern times would approach the
power of the new company. ViacomCBS said
Bertelsmann will pay a termination fee if the
deal fails due to regulatory reasons.
Agents and authors often worry that a
concentration of power in publishing could
mean less competition for book deals, and
lower advances.
The Authors Guild, a writers’ organization, said
Wednesday that it opposed the sale because
it would hurt competition, making it more
difficult for authors and agents to negotiate with
publishers. It said the U.S. Department of Justice
should challenge it.
The department did not immediately return a
request for comment.
“As an organization of writers it’s important
to us that the publishing industry (thrives),
and that there be multiple, robust outlets to
bring the widest variety of books to audiences,”
said Suzanne Nossel, the CEO of PEN America.
“To the extent that efficiencies are garnered
through consolidation, it is our hope that they
are a catalyst to enable greater investment in
authors, books, and outreach to readers.”
Bertelsmann’s rival News Corp., which
owns HarperCollins, also slammed the deal.
“Bertelsmann is not just buying a book
publisher, but buying market dominance
as a book behemoth,” said News Corp Chief
Executive Robert Thomson said in a statement.
“This literary leviathan would have 70% of
the U.S. literary and general fiction market.”
Penguin Random House Chief Executive