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Simon & Schuster Purchased By Private Equity Firm KKR For $1.62 Billion

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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.

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.

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.

“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)

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Disney Plus Announces Crackdown On Password Sharing In Canada In 2023

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NEW YORK — Today, password-sharing crackdowns are becoming increasingly prevalent in the streaming industry. In addition, Disney Plus follows suit.

In an email sent to Canadian users this week, Disney announced restrictions on the “ability to share your account or credentials outside of the household.”

The updated Canadian Subscriber Agreement for Disney Plus stipulates that users may only share a subscription within their domicile if permitted by their account tier and that violations may result in Disney Plus limiting or terminating service. According to the streamer’s help center, “Household” refers to the collection of devices associated with a subscriber’s principal residence and used by the residents.

These password-sharing restrictions are part of multiple revisions to the Disney Plus Subscriber Agreement that will go into effect on November 1 for most Canadian users. According to this week’s email, annual subscribers in Quebec may see the changes a bit later, depending on their billing cycle, while users who alter their plan before November 1 will see the changes take effect immediately.

As previously disclosed in August, Disney Plus will launch its ad-supported tier offerings in Canada and select European markets on November 1. The ad-supported tier of Disney Plus has been available in the U.S. since December 2022.

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Disney Plus Announces Crackdown On Password Sharing In Canada

When contacted by The Associated Press, a Disney Plus spokesperson declined to comment on whether similar domestic restrictions could be anticipated in countries other than Canada.

In a recent earnings call, Walt Disney Co. CEO Bob Iger pledged to make the company’s streaming services profitable, notably through an October price increase on its ad-free Disney+ and Hulu plans in the U.S. and a restriction on password sharing that is expected to last through 2019.

At the time, Iger did not elaborate on the password-sharing crackdown beyond stating that Disney could reap some benefits in 2024, although he added that the work “might not be completed” by then and that Disney could not predict how many password-sharing users would switch to paid subscriptions.

New restrictions on streaming extend far beyond Disney. Netflix, for instance, made headlines when it began clamping down on password sharing. Freeloading viewers are now required to open their accounts in the United States unless a subscriber with a standard or premium plan agrees to pay a $8 monthly surcharge to enable more people from different households to watch.

SOURCE – (AP)

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Man Wanted In Killing Of Baltimore Tech Entrepreneur Pava LaPere Is Arrested, Police Say

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BALTIMORE — Officials said Thursday that police had been searching for the man arrested in a Baltimore tech entrepreneur slaying since last week as a suspect in a separate rape and arson.

Jason Billingsley, charged with first-degree murder in the death of Pava LaPere, 26, was released from prison in October 2016 after accumulating good behavior credits to reduce his sentence for a 2013 sexual assault.

Commissioner of the Baltimore Police Department Richard Worley stated at a news conference on Thursday that detectives believe LaPere was murdered on Friday evening, even though her body was not discovered until after she was reported missing on Monday. The Johns Hopkins University graduate, who founded the tech startup EcoMap Technologies while still a student, was discovered deceased in her flat complex with signs of blunt force trauma.

Brandon Scott, the mayor of Baltimore, questioned why Billingsley was released from prison so soon after his sexual assault conviction, but he noted that police are only one component of a larger system that includes prosecutors, courts, and prisons.\

“We are aware that we are discussing a system with which we must also contend,” he said.

Worley stated that investigators are evaluating all open cases since Billingsley’s release in October 2022 to determine whether any connections exist.

This violent criminal offender and repeat offender will be returned to prison, where he belongs, Worley stated. Now, let’s all collaborate to ensure that he stays there.
The family of LaPere thanked the city police and their law enforcement colleagues for their “tireless efforts” during the investigation and capture of the suspect.

lapere

Man Wanted In Killing Of Baltimore Tech Entrepreneur Pava LaPere Is Arrested, Police Say.

“We’re relieved to know he can no longer hurt other innocent victims,” the family said. While this does not alter the fact that Baltimore lost one of its most devoted and influential admirers, we will continue to honor Pava Marie’s life, achievements, and legacy.

According to an application for an arrest warrant, the victim in the 2013 case told police that during the assault, he displayed a knife and strangled her. Ivan Bates, the state’s attorney for Baltimore City, stated that Billingsley pleaded guilty in 2015 to first-degree sex assault, for which state guidelines prescribe a sentence of 15 to 25 years, but Billingsley received a sentence of 30 years with all but 14 years suspended as part of a plea agreement.

Bates stated that the judge who sentenced Billingsley hesitated before approving the plea agreement reached between prosecutors and Billingsley’s counsel. However, the judge ultimately approved the terms of the agreement.

According to court documents, Billingsley was convicted of second-degree assault in 2011 and first-degree assault in 2009.

Police say Billingsley is also a suspect in a rape, attempted murder, and arson that occurred in Baltimore on September 19. Within hours of the crime, a warrant was issued for Billingsley, and detectives have been actively searching for him ever since, including through his mobile and social media use, interviewing witnesses and monitoring his known addresses, according to Worley.

“When we held a press conference about the death of LaPere, we were approximately 88 metres away from capturing the suspect, but he was able to evade capture,” Worley said.

According to Worley, Billingsley knew the victims of the September 19 incident, which was not a random act, but the department did not warn the public about Billingsley at the time. According to him, the police have no reason to suspect LaPere knew Billingsley.

lapere

Man Wanted In Killing Of Baltimore Tech Entrepreneur Pava LaPere Is Arrested, Police Say.

“I hope this sends a message to anyone else who enjoys committing these kinds of cowardly, heinous acts that we will not tolerate it and will remove you from the streets of Baltimore,” said the mayor of Baltimore, Brandon Scott.

The public defender’s office, which has previously represented Billingsley, told The Associated Press on Tuesday that it was too soon to comment on this case. Thursday morning, the office waited to respond to an email seeking comment on behalf of Billingsley.

Bates stated that if a grand jury returns an indictment, his office will pursue a life sentence without parole.

“If this person is found guilty in a court of law, he or she will never again be able to harm any of the citizens of our fine city,” Bates said.

LaPere, named to Forbes’ 30 under 30 list for social impact earlier this year, was remembered at a vigil on Wednesday evening as someone who remained committed to building community and using entrepreneurship to create meaningful social change even as her national profile increased.

LaPere remained committed to the philanthropic endeavors that initially inspired her as she developed EcoMap, a platform that uses technology to curate data and make it more accessible throughout social ecosystems.

Frank LaPere, her father, told the crowd of more than 100 people assembled for the vigil, “She knew exactly what she wanted to accomplish, and nothing could stand in her way.”

according to Taboola

SOURCE – (AP)

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Netflix’s DVD-By-Mail Service Bows Out As Its Red-And-White Envelopes Make Their Final Trip

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Netflix’s once-iconic DVD-by-mail service is finally coming to an end, a quarter century after two Silicon Valley visionaries came up with the idea that destroyed Blockbuster video stores while paving the way for video streaming, which has revolutionized the entertainment industry.

After its five remaining distribution centers in California, Texas, Georgia, and New Jersey mail their final discs on Friday, the DVD service that has consistently declined in the shadow of Netflix’s video streaming service will cease operations.

Less than one million remaining DVD service subscribers can retain the final discs that arrive in their mailboxes.

Longtime Netflix DVD subscriber Amanda Konkle said on Thursday as she awaited the arrival of her final disc, the 1971 British horror film “The Nightcomers” starring Marlon Brando, “It’s sad.” “It makes me feel sentimental. Acquiring these DVDs has been an integral part of my regimen for decades.

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Netflix’s DVD-By-Mail Service Bows Out As Its Red-And-White Envelopes Make Their Final Trip

Some of the remaining DVD enthusiasts will receive up to ten discs as a farewell gift, including 41-year-old Konkle, who has viewed more than 900 titles since joining the service in 2006. In the hopes of being selected for the 10 DVD giveaway, Konkle prioritized Brando films and older films that are difficult to locate on streaming services in her queue.

At its height, the DVD had 16 million subscribers who could choose from more than 100,000 titles. But in 2011, Netflix decided to separate its DVD business from its streaming business, which now claims 238 million subscribers worldwide and generates $31.5 billion in annual revenue.

On the other hand, the DVD service generated only $146 million in revenue last year, making its eventual closure inevitable against the backdrop of intensifying competition in video streaming, which has compelled Netflix to cut costs to increase profits.

“It’s bittersweet,” Netflix’s CEO Marc Randolph said when the company delivered its first DVD, “Beetlejuice,” in April 1998. “We knew this day was coming, but the miraculous thing is that it didn’t come 15 years ago.”

SOURCE – (AP)

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