US publishing mega-merger blocked by federal judge

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A US federal judge has blocked publishing giant Penguin Random House from acquiring its competitor Simon & Schuster, siding with the US Justice Department which had argued against the mega-merger

The deal, worth $2.2 billion, had been announced in November 2020 and would have brought together two of the five largest American publishers.

The Justice Department hailed the decision, which comes only a week before crucial midterm elections in which Democratic President Joe Biden has tried to paint his party as defending consumers' interests. With 10,000 employees worldwide and nearly 15,000 books published per year, Penguin Random House, a subsidiary of the German Bertelsmann Group, dominates the industry in the United States.

 

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