DOJ Sues to Stop Sale of ViacomCBS Publishing Arm to Penguin

Penguin Random House's acquisition of ViacomCBS' Simon & Schuster would give Penguin, already the world's largest book publisher, "outsized influence" over what's published in the U.S. and what authors are paid, DOJ said Tuesday in a Clayton Act antitrust complaint (docket 21-cv-02886) in U.S. District Court for the District of Columbia seeking to block the transaction. ViacomCBS said in an SEC filing the Simon & Schuster purchase agreement includes commitments by Penguin to defend any litigation that would prevent the deal, as well as a termination fee to ViacomCBS if the transaction doesn't close for regulatory reasons. ViacomCBS, named as a defendant in the suit, said the Justice allegations "are without merit and [it] intend[s] to defend against them vigorously." The $2.2 billion purchase was announced a year ago.