вЂњIf theyвЂ™re worried about the little author losing leverage or getting smaller advances, I donвЂ™t see how that would happen,вЂќ the editor said. You could certainly make the case that itвЂ™s a good thing for Simon & SchusterвЂќ-which is owned by ViacomCBS, the result of a 2019 merger between Viacom and CBS Corporation-вЂњbecause what else are they gonna do in the short term?вЂќ (Penguin Random House is owned by the German conglomerate Bertelsmann.)ДЄnother editor agreed but added a dash of skepticism, considering that the merger apparently wonвЂ™t restrict competitive bidding except at the uppermost echelons of the market, where the big million-dollar-plus auctions come into play. ItвЂ™s hard to make the case that itвЂ™s a good thing for the industry. вЂњObviously every agent is thrilled that the wheels might be grinding to a halt on this,вЂќ a well-connected agent told me.В A big-league editor echoed that sentiment: вЂњI donвЂ™t know anyone who would think this is a great thing to happen.

ThereвЂ™s one segment of the industry in particular that is unsurprisingly pleased. (Pass the popcorn.)ДЄs for the general reaction among publishing insiders, the sense I get is that a lot of them-perhaps with the exception of executives at PRH and S&S-think DOJ is doing the right thing. BidenвЂ™s Department of Justice, which is taking a more aggressive approach to corporate consolidation, says that the proposed $2.18 billion merger would give Penguin Random House, the worldвЂ™s largest publisher, вЂњunprecedented controlвЂќ over the book-publishing industry, and that it would result in вЂњlower advances for authors and ultimately fewer books and less variety for consumers.вЂќ PRH and S&S argue that the merger would not reduce вЂњthe number of books acquiredвЂќ or the вЂњamounts paid for those acquisitions,вЂќ and that the two publishing houses, both members of the so-called вЂњBig Five,вЂќ would still be permitted to bid against each other in auctions вЂњup to an advance level well in excess of $1 million.вЂќ PRH has its boxing gloves on: The company has retained Daniel Petrocelli, the same man who litigated AT&T and Time WarnerвЂ™s successful battle with the Trump administration in 2018. The news this week that the Biden administration is headed to court to stop Penguin Random House from acquiring Simon & Schuster added a new ripple of drama to the already feverish climate of media M&A.

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