Paramount Agrees to Sell Simon & Schuster to KKR, a Private Equity Firm

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Paramount said on Monday it had reached a deal to sell Simon & Schuster, one of the biggest and most prestigious publishing houses in the United States, to the private-equity firm KKR, in a major changing of the guard in the books business. The deal, for $1.62 billion, will put control of the cultural touchstone behind authors like Stephen King and Bob Woodward in the hands of a financial buyer with an expanding presence in the publishing industry. While private equity investors have had a significant footprint in the book business — different firms have owned literary agencies, publishing houses and the retailer Barnes & Noble — the acquisition of one of the largest publishers in the country vastly increases the hold of financial interests in the business. “I think I speak on behalf of the entire management team when I say we are thrilled with the result,” Jon Karp, chief executive of Simon & Schuster, said in an interview. “They plan to invest in us and make us even greater than we already are. What more could a publishing company want?”