NEW YORK (AP) – Rupert Murdoch’s News Corp. announced Monday that it is acquiring the Houghton Mifflin Harcourt book publishing division, which includes blockbuster editions such as JRR Tolkien’s The Lord of the Rings. the trilogy. և George Orwell Orwell “1984.” թ.
News Corp. owns HarperCollins, one of the industry’s largest bookstores, which will operate a division called HMH Books & Media, the company said Monday. The announced purchase price was $ 349 million.
“Writing untimely is a timeless source of income; with each passing day, the potential for high-yield audio and video creations is growing,” said Robert Thomson, CEO of News Corp. “The HarperCollins collection will be promoted for children and adults, and the authors of the world will have a bigger platform for their creativity and ingenuity. It is very possible to expand in an era when emerging monopolies threaten the creative market, so we welcome JPR Tolkien, Virginia Woolf, George Orwell and many other reputable writers in HarperCollins. ”
The creators of HarperCollins ranged from Harper Lee’s Ann Patch to Neil Gaiman’s Roald Dahl. The publisher expects to “accumulate immediate cost savings over two years, accumulating more than $ 20 million a year, including production, distribution, and other cost-effectiveness.”
On Monday, a HarperCollins spokesman declined to say whether the company was planning to lay off, saying it was focused on “closing the deal” and that no decision had been “made”.
In November, Penguin Random House announced that rival Simon & Schuster was acquiring $ 2.2 billion, reducing the so-called Big Five of four US publications, including HarperCollins, Hachette Book Group and Macmillan.
News Corp. was reportedly interested in acquiring Simon & Schuster, and Thomson was outraged by Megadegal’s announcement that the new organization would be a “book behemoth” or “literary leviathan” who would dominate the market. The purchase of HMH by HarperCollins, like the proposed Penguin Random House deal, is subject to federal approval. Agents and authors worry that the concentration of power in publishing will mean less competition for book deals գործ small gains.
The deal is the second News Corp. to announce in the last week. It was announced on Thursday that it is buying the financial news publisher Investor’s Business Daily for 275 million dollars.
Houghton Mifflin, who says it serves 90% of US schools, says sales will focus on the K-12 education business, which will put more emphasis on digital sales. The company has been in financial trouble for years and will use some of its sales revenue to pay off its debts.
The deal is expected to close in the second quarter of 2021.