Quote:
Originally Posted by darryl
I think S&S would fit beautifully into Amazon, though I'm afraid I don't see Caroline Reidy as an Amazon executive! On reflection I also agree with you about Hachette. The French would probably see an Amazon acquisition as being a cultural disaster of epic proportions. With PRH 75% owned by Bertelsmann last I heard, HC part of News and McMillan owned by Holtzbrinck S&S does seem to be the likely target if Amazon does choose to go this way.
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It really depends on the Redstone family.
(Funny how those publishing multinationals are all owned by "Dynasty" families, huh?)
They're transitioning control of the family empire so if the daughter isn't as impressed as the old man by owning a low margin, minimally profitable cash churner she might put it up for auction. Murdock has already made multiple offers to buy it every time they have a lean year but the senior Redstone kept refusing to sell. The daughter might have other ideas. (In fact, she does. He split the family empire into two and she is looking to reassemble.)
Thing is, if S&S goes up for sale there is no guarantee Amazon can get it. Other media companies might overbid, Google, Apple, or Facebook might want the influence peddling power, or S&S execs might quietly steer the sale towards another BPH.
Personally, I think the latter is the most likely scenario. The BPHs have been angling to consolidate to two megarcorps for years. Long term it's a competition between Bertlesmann and the Murdocks. Bertlesmann ate Penguin and Murdock has been after the weaker players, S&S and Hachette, ever since. Harlequin was more of an appetizer. What he really wants is S&S and its IP catalog, much stronger than Hachette. Plus, of course, the political books division. Everybody wants that.
I'm sure Reidy agrees with you, that she won't be a good fit in the Amazon empire, so if she hears the Redstones are ready to sell she'll alert the others that S&S is in play, giving them time to hold a private auction. Most media mergers are negotiated under the table long before the bankers/accountants are brought in. You rarely get a bidding war like the one going on over SKY.
https://www.reuters.com/article/us-s...-idUSKCN1GD5G2
Bottom line, Amazon could benefit from buying a bigger publisher and grab a mid-tier player but I doubt they are willing to overpay enough to outbid the Murdocks. So HMH or Scholastic is more likely than a true BPH.
Not that any big buy is likely.
Just theoretically possible.
Amusing thought experiment considering the ongoing clash between the reactionary BPH culture and the entrepreneurial Amazon culture.
