Horror author Stephen King has testified at a trial to prevent a $2.2 billion merger between Penguin Random House and Simon & Schuster, calling the proposed post-merger plans “a bit ridiculous.”
King, author of The Shining, Carrie, and other blockbusters, said in court if the two mammoth publishers merge and still bid against each other for books, it will be like “a husband and wife” trying , “to buy the books”. same house.’
He is among a group of people opposed to the $2.2 billion merger antitrust case, along with publishing executives and authors’ agents.
Penguin Random House, the largest book publisher in the United States, said it plans to buy rival Simon & Schuster in November 2020.
The publishing house belongs to the German media group Bertelsmann. Simon & Schuster is owned by ViacomCBS, now Paramount Global. The Justice Department filed its lawsuit to block the November 2021 merger.
King is fighting his own publisher, Simon & Schuster, who has represented him for years – as many fear the “Big Five” publishers four will hurt the industry.
Horror author Stephen King, 74, arrives in court today to testify on behalf of the government during a trial against his own publisher, Simon & Schuster, in which the US Department of Justice is trying to persuade a federal judge to stop the proposed merger of Penguin Random House and Simon & Schuster
Stephen King, known as the King of Horror for his best-selling books, signs an autograph for a fan outside the E. Barrett Prettyman Federal Courthouse in Washington, DC
If the merger goes through, there are fears that the merged company would produce a disproportionate percentage of the best-selling books in the US.
This means that authors who normally have both houses competing for their titles would no longer benefit from this competition.
Defense attorney Daniel Petrocelli is expected to argue that the merger will make the market for books and bidding on titles even more competitive, claiming that Penguin Random House and Simon & Schuster are “rarely the top two bidders” for new titles by top authors are.
Prosecutor Mel Schwarz questioned the top writer during the trial, which included moments of humor and brief flashes of gentle outrage.
Wearing an all-gray suit, Stephen King began his testimony, and the courtroom giggled when a Justice Department attorney asked King to identify his occupation.
He told them, “My name is Stephen King. I’m a freelance writer.’
The E. Barrett Prettyman Federal Courthouse in Washington DC heard Penguin Random House pledge that its imprints will continue to bid against Simon & Schuster for author titles — even if the merger goes through and the companies effectively become one.
When asked about the prospect, King called the idea “a bit ridiculous,” adding, “You might as well say a man and a woman will bid against one another for the same house.”
He quipped, gesturing with a polite arm movement, “It would be kinda very gentlemanly and kinda after you and after you.”
The author told the room why he is testifying: “I came because I think consolidation is bad for competition. It is becoming increasingly difficult for writers to find money to live on.
“The Big Five are pretty entrenched. That’s my understanding of the book business and I’ve been in it for 50 years.”
Defense attorney Petrocelli surprisingly said he had no questions for him during cross-examination.
In the publishing merger process, the government has focused not on what consumers pay for books, but on advances paid to the most successful authors, particularly those who have received $250,000 or more.
Defense attorney Petrocelli surprisingly said he had no questions for the author during cross-examination
Penguin Random House, the largest book publisher in the United States, said it plans to buy rival Simon & Schuster in November 2020. The Justice Department filed its lawsuit to block the November 2021 merger
The US publishing house Simon & Schuster also owns a number of smaller sub-publishers – for both adults and children
Some of the highest-paid authors from both publishers include Hillary Clinton, Bill Clinton, and Bruce Springsteen — who have all reportedly received over $10 million upfront for their books.
Typically, celebrities, politicians, and award-winning authors earn $250,000 or more in book advances because publishers can already gauge their sales potential.
The government said in a pre-trial brief: “Evidence will show that the proposed merger would likely result in authors of books likely to sell well receiving reduced advances, meaning authors who have been working on their manuscripts for years will get less for their efforts get paid.”
The government also intends to show that there were concerns among the merger parties that the deal is not legal.
King has long opposed the $2.2 billion merger, tweeting last year, “The more publishers consolidate, the harder it is for indie publishers to survive.”
The top five publishers are Penguin Random House, HarperCollins, Macmillan, Simon & Schuster and Hachette, along with Walt Disney Co and Amazon.com Inc. HarperCollins is owned by News Corp.
Judge Florence Pan of the US District Court for the District of Columbia will decide whether the deal can go ahead. The process should take two to three weeks.
Simon & Schuster also own a number of smaller sub-publishers – for both adults and children.
These include: Adams Media, Atria, Emily Bestler Books, Enliven, Folger Shakespeare Library, Free Press, Gallery, Howard, Jeter Publishing, One Signal, Scout Press, Avid Reader Press, Scribner, Simon Element, Threshold and Touchstone.
For children’s books, the company also owns 11 other publishing units, including Paula Wiseman Books, Atheneum and Saga Press.
Penguin Random House is home to almost 275 editorially and creatively independent publishers – including Penguin Classics, Writer’s Digest Books and Harmony Books.
It is not believed that this merger would necessarily have an impact on how much consumers are charged for the books they buy. Instead, it is assumed that authors are paid less for their work.
Some of the top authors who have been paid large sums of money up front are Jennifer Egan. The novel Manhattan Beach was published by Simon & Schuster in 2017, and she reportedly received a $1 million advance for the book.
In 2016, Penguin Random House paid author Emma Cline a $2 million advance for her novel The Girls.
Bruce Springsteen received a $10 million advance from Simon & Schuster for his 2017 book Born to Run.
Simon & Schuster also published Hillary Clinton’s Living History – in which they reportedly paid her $14 million upfront.
And her husband and former president received a $15 million advance from Penguin Random House subsidiary Alfred A. Knopf for his 2004 title My Life.
The process goes on.