In EDS ansehen

Considerations of monopsony in merger analysis: The Penguin Random House case.

Gespeichert in:
Bibliographische Detailangaben
Titel: Considerations of monopsony in merger analysis: The Penguin Random House case.
Autoren: Alderman, Brianna L1 (AUTHOR), Blair, Roger D2,3 (AUTHOR)
Quelle: Journal of Antitrust Enforcement. Jul2025, Vol. 13 Issue 2, p444-457. 14p.
Schlagwörter: *ANTITRUST law, *INDUSTRIAL concentration, *MONOPOLIES, *MERGERS & acquisitions, *PUBLISHING, JUSTICE administration, DISTRICT court decisions
Firma/Körperschaft: BERTELSMANN SE & Co. KGaA 152811600 , PENGUIN Random House , UNITED States. District Court (California: Central District) , UNITED States. Dept. of Justice , SIMON & Schuster Inc.
Abstract: In 2020, Bertelsmann SE & Co. the owner of Penguin Random House (PRH), offered to acquire Simon & Schuster for $2.175 billion. If the merger had been consummated, the newly merged firm would have had a 49 per cent share of the market for publishing rights to anticipated top-selling books. Concerned by the proposed merger, the Department of Justice alleged that a more concentrated sector for publishing would result in lower advances to authors of highly anticipated books. The antitrust concern, therefore, centred on the exercise of monopsony power rather than monopoly power. The District Court was persuaded by the evidence presented at trial and blocked the merger on that ground. Having lost at trial, PRH decided to forgo an appeal. This article provides a brief analysis and critique of the District Court's ruling. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Antitrust Enforcement is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
Datenbank: Business Source Index
Beschreibung
Abstract:In 2020, Bertelsmann SE & Co. the owner of Penguin Random House (PRH), offered to acquire Simon & Schuster for $2.175 billion. If the merger had been consummated, the newly merged firm would have had a 49 per cent share of the market for publishing rights to anticipated top-selling books. Concerned by the proposed merger, the Department of Justice alleged that a more concentrated sector for publishing would result in lower advances to authors of highly anticipated books. The antitrust concern, therefore, centred on the exercise of monopsony power rather than monopoly power. The District Court was persuaded by the evidence presented at trial and blocked the merger on that ground. Having lost at trial, PRH decided to forgo an appeal. This article provides a brief analysis and critique of the District Court's ruling. [ABSTRACT FROM AUTHOR]
ISSN:20500688
DOI:10.1093/jaenfo/jnae041