[ PW Home ] [ Bestsellers ] [ Subscribe ] [ Search ]

Publishers Weekly News

Pearson Alters Simon &Schuster Deal with Hicks, Muse
Jim Milliot -- 7/13/98
In a new agreememt reached with Hicks, Muse, Tate and Furst, Pearson has agreed to sell to the investment banking firm Simon &Schuster's reference division, as well as the domestic operations of S&S's business and professional divisions, for $860 million.
The deal is slightly different from the preliminary agreement that called for Hicks, Muse to acquire both the domestic and international operations of the business and professional divisions, along with the reference group, for $1 billion. Under terms of the new arrangement, Pearson will retain the business and professional group's international operations, which had sales in 1997 of $43 million. Hicks, Muse will still acquire the U.S. operations of such companies as Jossey-Bass and Appleton &Lange.

A spokesperson for Pearson said that after closer examination of S&S's operations, Pearson found that the business and professional international units were so integrated into the educational operation that it made more sense to keep those units together than to try to break them up. The new agreement includes a five-year deal through which Hicks, Muse's products from the acquired divisions outside the U.S. In 1997, revenues from this new agreement would have been $70 million.

The new deal is contingent upon the completion of Pearson's acquisition of the S&S divisions from Viacom.

S&S May Add Reference

The S&S consumer group, meanwhile, continues to prepare for doing business on its own. At a recent meeting of the American Book Producers Association, S&S trade president Carolyn Reidy said that with Macmillan leaving the S&S family, S&S will probably be looking to add some popular reference works to its lists, although she said she didn't think S&S would do any major reference series.

Reidy also noted that at present, S&S d s about 25 illustrated books per year, a number that she d s not expect to see changed. Reidy observed that in today's market it is very difficult to get accounts to take large numbers of books priced at more than $35. She told the audience that, according to Waldenbooks, 85% of its cookbook sales come from titles under $30.
Back To News
--->
Search | Bestsellers | News | Features | Children's Books | Bookselling
Interview | Industry Update | International | Classifieds | Authors On the Highway
About PW | Subscribe
Copyright 2000. Publishers Weekly. All rights reserved.