(Reuters) -Paramount Global said on Monday it was selling Simon & Schuster to KKR & Co for $1.62 billion in an all-cash deal, ending a years-long attempt to sell the marquee book publisher.
Shares of the company rose nearly 7% in extended trading after Paramount also beat estimates for quarterly earnings as its streaming service posted strong growth.
Paramount has been trying to offload the publisher after a federal judge blocked its $2.2 billion deal to sell it to Penguin Random House last year.
The other bidders for Simon & Schuster included News Corp-owned HarperCollins and investor Richard Hurowitz, Reuters had previously reported.
Simon & Schuster publishes the works of writers, including Stephen King, Jennifer Weiner and former U.S. presidential candidate Hillary Clinton.
The deal will help free up resources for Paramount as it strives to bolster its streaming service, Paramount+, in a fiercely competitive industry.
Video-streaming services have been trying to strike a balance between profit growth and keeping their content mill running, as they come under investor scrutiny over their expensive efforts to attract subscribers.
On an adjusted basis, Paramount earned 10 cents per share, while analysts had expected the company to break even.
Paramount reported second-quarter revenue of $7.62 billion, beating analysts’ average estimate of $7.43 billion, according to Refinitiv data.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Anil D’Silva)
