ViacomCBS puts Simon & Schuster, publisher of Stephen King and Bob Woodward, up for sale
Company is trying to bring in cash to pay down debt and please its shareholders
NEW YORK (AP) — Simon & Schuster, the publisher of such authors as Stephen King and Bob Woodward, is up for sale.
ViacomCBS, fresh off a merger, is looking to sell its book publishing business as it tries to raise cash to pay down debt and please shareholders with dividends and stock buybacks.
EMPLOYEES TO GRILL VIACOM-CBS EXECS ON MERGER 'SYNERGIES' AS LONG-AWAITED DEAL CLOSES
Simon & Schuster is a major publishing house, releasing nearly 2,000 books a year, according to its website. Its library includes Ernest Hemingway's "The Old Man and the Sea" and Dale Carnegie's "How to Win Friends & Influence People." But the business made up just 3% of ViacomCBS' revenue last year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VIAC | NO DATA AVAILABLE | - | - | - |
ViacomCBS CEO Bob Bakish said the book publisher is not a "core asset" of the company since it isn't video. But he said it's a "marquee asset" that is "highly valuable."
"I've had multiple unsolicited inbound calls" about the publisher, he said Wednesday at an investment conference.
FILE - This May 22, 2018 file photo shows Stephen King at the 2018 PEN Literary Gala in New York. (Photo by Evan Agostini/Invision/AP, File)
Simon & Schuster CEO Carolyn Reidy sent a letter to employees Wednesday telling them that ViacomCBS is beginning the sales process and that business will continue as usual.
Simon & Schuster announced on Tuesday that it would publish bestselling author Janet Evanovich's next four books.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
ViacomCBS is also looking to see what other businesses it can unload. It has already been trying to sell the longtime CBS headquarters building, Black Rock, a famous Midtown Manhattan office tower designed by modernist master Eero Saarinen. Bakish said Wednesday that several potential buyers are interested and that he expects a sale to close this year.
ViacomCBS owns cable networks Nickelodeon, MTV, BET and Comedy Central as well as broadcast network CBS and movie studio Paramount. It is trying to navigate consumers' shift from watching live TV on a television set to streaming shows and movies on the internet. It's bulking up an existing streaming service, CBS All Access, and it will also continue supplying rivals with its library of shows and movies, like making SpongeBob spin-offs for Netflix.