Business
Simon & Schuster Purchased By Private Equity Firm KKR For $1.62 Billion
NEW YORK — After a federal judge rejected the acquisition of Simon & Schuster by rival publisher Penguin Random House due to worries that competition would lead the book industry to contract, Simon & Schuster has now been sold to the private equity firm KKR. A KKR executive describes the deal as an opportunity to collaborate with “one of the most effective” book publishers.
According to Paramount Global, the parent company of the illustrious publishing business, the private equity goliath will purchase Simon & Schuster for $1.62 billion in cash. Simon & Schuster will function independently, with CEO Jonathan Karp in charge.
We are happy, Karp stated on Monday. “We will continue to be a stand-alone business; with KKR’s assistance, we may grow even more successful.
Paramount will use the money from the sale to reduce debt. The studio announced a $424 million deficit for the three months ending on June 30 on Monday. Government clearance of the agreement is required, but it is unlikely to encounter the same challenges the Penguin Random House deal had.
One of the “Big Five” of New York publishing houses is Simon & Schuster, which publishes writers including Stephen King, Colleen Hoover, and Bob Woodward. The other four are Penguin Random House, HarperCollins Publishers, Hachette Book Group, and Macmillan. Rupert Murdoch’s News Corp.-owned HarperCollins had previously expressed interest in acquiring Simon & Schuster.
After a federal judge rejected the acquisition of Simon & Schuster by rival publisher Penguin Random House due to worries that competition would lead the book industry to contract.
Even if the book market has slowed down over the previous two years, Simon & Schuster has had good sales. The publisher has scheduled some of the most eagerly awaited autumn publications, including Britney Spears’ autobiography “The Woman In Me” and Walter Isaacson’s biography of Elon Musk.
Simon & Schuster was commended as efficient and well-run by Richard Sarnoff, chair of media at KKR, who also stated that it would maintain its editorial freedom.
A former official at Bertelsmann, the parent firm of Penguin Random House, said, “We’re not going to tell them what to buy, what to publish, or what not to publish.” We will uphold the editorial freedom that has existed for 99 years.
No layoffs were anticipated, according to Sarnoff, and KKR intended to invest in and promote Simon & Schuster instead, noting potential growth in overseas sales. Like other KKR-owned businesses, Simon & Schuster will offer its staff ownership, which might give the publisher a competitive edge. According to Sarnoff, an ownership interest might wind up being worth half or more of a worker’s annual salary in an industry where starting salaries are typically between $45,000 and $50,000, a source of growing discontent among young people trying to afford to live in the New York City region.
After a federal judge rejected the acquisition of Simon & Schuster by rival publisher Penguin Random House due to worries that competition would lead the book industry to contract.
“There’s a lot of upside,” he remarked. Sarnoff continued, “I don’t know how long KKR will run Simon & Schuster before selling it,” citing a normal range of five to seven years. He stated, “We don’t have a specific schedule.
Employee equity is uncommon but not unheard of in the book publishing industry. Since its inception in 1923, W.W. Norton & Company has been entirely owned by its employees.
Simon & Schuster was set to be sold by Paramount to Penguin Random House for $2.2 billion late in 2020, making the new business the biggest in the country. However, the Department of Justice, which has adopted a more strict consolidation policy under the Biden administration than other recent administrations, filed a lawsuit in 2021 to prevent the transaction.
King was one of the parties opposed to the merger during the three-week trial in the summer of 2022. However, U.S. District Judge Florence Y. Pan decided in the government’s favor, stating that the DOJ had presented “a compelling case that predicts substantial harm to competition.”
Instead of appealing the ruling, Paramount decided to step up its attempts to sell Simon & Schuster, which would celebrate its 100th anniversary the following year. Since being acquired by Gulf+Western in 1975, the publisher, founded in 1924 by Richard Simon and Max Schuster, has undergone several ownership changes. Since the publisher didn’t mesh with the company’s emphasis on video entertainment, Paramount has tried for years to sell it.
SOURCE – (AP)
Business
Sonic the Hedgehog Dominates Christmas Wish Lists
Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.
Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.
Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.
Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.
Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.
Retailers who tap into this trend are sure to see strong holiday sales.
Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.
Sonic the Hedgehog 4
Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.
The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.
The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.
On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.
The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.
They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.
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Business
Amazon Strike Called By Teamsters Union 10,000 Walkout
An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.
The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.
According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.
The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.
It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.
Amazon Strike at 10 Locations
Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.
The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.
The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.
Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.
Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.
Stalled Contract Negotiations
Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.
However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.
Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.
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Business
Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.
(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.
The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.
The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”
The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.
Amazon has refused to acknowledge the union for many years.
The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.
Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.
Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.
“Amazon workers are exercising their power,” Randy Korgan stated to NPR.
“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.
Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.
The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.
Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.
The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.
Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.
Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.
Teamsters organize Amazon delivery couriers and other employees.
In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.
The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.
In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.
“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”
The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.
SOURCE: NPR
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