Stephen King to testify in publishing merger deal

Stephen King will take the stand.

The 74-year-old horror writer who has published more than 60 novels will be a star witness for the U.S. government in its case to stop Penguin Random House from acquiring its publishing rival Simon & Schuster in a $2.2 billion deal. That mega-merger would mean the nation’s number of major publishing houses would be reduced from five to four.

The Justice Department sued to block the deal, which is being seen as a test of the Biden administration’s plans to deal with anti-trust matters. Litigation began Monday in a Washington, D.C., before U.S. District Judge Florence Pan.

Justice Department attorneys labeled the merger “presumptively wrong.” Penguin Random House argued the unification would be a boon to the book business. King is expected to testify at Tuesday’s session of the weeks-long trial in U.S. District Court in Washington, D.C.

Simon & Schuster publishes writings by King, who is known for such works as “The Stand,” “The Shining” and “Salem’s Lot.”

Penguin Random House is controlled by the German media company Bertelsmann. Simon & Schuster is owned by Paramount Global, which is headquartered in Midtown Manhattan.

The Justice Department has expressed concerns over how the deal between the companies, should it commence, might impact American retailers, consumers and book authors. Publishing houses involved in the matter contend that combining the companies would provide them the opportunity to pour greater resources into content and distribution.

According to the Justice Department, competition between the publishers means better advances for authors and a stronger range of choices for book buyers. Penguin Random House is the nation’s top book publisher while Simon & Schuster is the fourth-largest. Publishing houses Hachette, HarperCollins and Macmillan stand between them, controlling 90% of the book-selling market.

Penguin Random House and Simon & Schuster combined would control nearly half that market, prosecutors worry.

Penguin Random House has inked deals with former president Barack Obama and his wife, Michelle Obama, worth an estimated $65 million. They also gave former president Bill Clinton $15 million for his memoir.

Simon & Schuster paid 2016 presidential candidate Hillary Clinton $8 million for her memoir. It also counts political journalist Bob Woodward and rocker Bruce Springsteen among its thoroughbreds.

[ Stephen King wonders: What happened to you, America? ]

The Biden administration has been adamant about leveling the playing field with regards to aspiring monopolies. In July 2021, the president issued an Executive Order listing several objectives meant to promote corporate competition.

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“A fair, open, and competitive marketplace has long been a cornerstone of the American economy, while excessive market concentration threatens basic economic liberties, democratic accountability, and the welfare of workers, farmers, small businesses, startups, and consumers,” that order said.

It added that “a broad and sustained prosperity depends on an open and competitive economy.”

King, who has nearly 7 million followers on Twitter, seems to have other things on his mind.

On Sunday, he wondered about the 1961 doo-wop tune “Rama Lama Ding Dong.”

“All respect to the doo-wop group the Edsels, it’s hard for me to believe that they really had a girl named Rama Lama Ding Dong,” he said.

King frequently uses social media to advance his liberal-leaning politics and to take issue with his home state of Maine’s Republican senator, Susan Collins. He has expressed support for Biden administration policies.

With News Wire Services