Well, Penguin Random House and Simon & Schuster have been. You’ve probably heard about it: The Department of Justice filed an antitrust lawsuit against the publishing giants in the later part of 2021 to block Penguin Random House’s proposed acquisition of Simon & Schuster. The 3-week trial began in August and a verdict is expected in the fall. Until then, we’re breaking down what the acquisition means for us as book publishers, consumers, and readers, and for the future of authors and general trade books.
A LITTLE BACKGROUND
Penguin Random House and Simon & Schuster are two of the “Big Five” U.S. publishers and have historically and vehemently competed and engaged in bidding wars to acquire manuscripts and publishing rights. This competition has resulted in increased book advances and ultimate author compensation for expected top-seller authors. Now, Penguin Random House is set to acquire Simon & Schuster for $2.18 billion.
The DOJ alleges that the proposed acquisition would eliminate a large fraction of publishing competition, threaten compensation and advances for authors, encourage collusion between the remaining Big Four publishers, and put Penguin Random House in control of half of the market for the acquisition of publishing rights to anticipated top-selling books. Per the DOJ, the legal result would culminate into an unfair and consolidated buying market called a monopsony. As one DOJ lawsuit release put it, "[a]uthors who are paid less write less, which, in turn, means that the quantity and variety of books diminishes too." In short, the DOJ argues that the merger isn't just bad for authors; it's bad for books.
Of course, Penguin Random House and Simon & Schuster argue that the merger won't have a negative impact on author compensation or book publishing as a whole. But more on this, the trial, Stephen King's appearance, and some mind-blowing stats revealed during testimony in our next newsletter. Stay tuned!
It's a lot, we know. But Bloomsday is here to keep highlighting, magnifying, and publishing books by historically excluded authors. And, if the publishing landscape is getting you down about the future, our latest Dear Sirs episodes on our Instagram might be the fix. The kids are gonna' be alright.
Check out our last three Dear Sirs episodes under the Instagram Live tab in our feed to hear our interviews with Local Literary Luminaries: Madison Petaway, Gabrielle Izu, Logan McLean, and Avalon Hogans. All four of these brilliant artists and activists believe that their work on the page, on the stage, and in the board meetings can change things for the better... and we do too. Tune in to find out what the next generation is doing to pave the way for better things to come.
Read on,
The Bloomsday Team