The publishing offices of Simon and Schuster in New York.
Amy T. Zielinski | Newscast | Universal Images Group | Getty Images
KKR’s entry into the book publishing space comes months after Paramount scrapped its initial agreement to sell Simon & Schuster to rival Penguin Random House — which was valued at $2.2 billion — after a federal judge rejected the merger and it raised red flags with the government.
The deal was announced Monday after Paramount posted its second-quarter earnings.
Paramount reported revenue of $7.62 billion, down about 2% year-over-year, as the company’s TV segment was once again dragged down by lower advertising revenue.
Media companies have been grappling with a soft advertising market, particularly affecting the traditional TV business.
Advertising revenue in the TV segment fell 10%. Revenue in the TV business revenue overall dropped 2% to $5.16 billion.
Meanwhile, Paramount said its streaming business continued to grow. Paramount+ had about 61 million subscribers by the end of the quarter, and subscription revenue grew more than 47% to $1.22 billion. Advertising revenue for the streaming business rose 21%.
This is breaking news. Please check back for updates.