Press release
News Corp To Acquire Houghton Mifflin Harcourt Books & Media Segment
Deal Will Significantly Expand HarperCollins Backlist, Adding 7000+ Titles, Including The Lord of the Rings trilogy, Curious George, The Polar Express,
About this update from News Corporation
[{"type":"text","content":"\nDeal Will Significantly Expand HarperCollins Backlist, Adding 7000+ Titles, Including The Lord of the Rings trilogy, Curious George, The Polar Express, Animal Farm and The Little Prince \n\nWill Grow HarperCollins’s Presence in the Children and Young Adult Genres, Audiobooks & Production\n\n NEW YORK--(BUSINESS WIRE)--\nNews Corp announced today that it has entered into an agreement to acquire the Books & Media segment of Houghton Mifflin Harcourt (HMH Books & Media). The business will be operated by HarperCollins Publishers, a News Corp subsidiary.\n\nHMH Books & Media is home to one of the most extensive and successful backlists in the publishing industry, with a history of strong profitability. Backlists have proven to be a sustainable and growing source of revenues, high margins and cash flow for publishers, particularly evergreen properties with broad, enduring and global appeal. In calendar year 2020, over 60% of HMH Books & Media revenues were generated by its formidable backlist.\n\nAmong the most popular of the more than 7000 titles in the HMH Books & Media backlist are: The Lord of the Rings trilogy and other titles by J.R.R. Tolkien; 1984 and Animal Farm by George Orwell; and All the King’s Men by Robert Penn Warren, among many others. HarperCollins currently has rights to J.R.R. Tolkien’s works in the British Commonwealth.\n\nHMH Books & Media also has a first-rate frontlist in the lifestyle and children's segments with recent best-sellers like Antoni in the Kitchen, Instant Pot Miracle, Wow in the World: The How and the Wow of the Human Body, Little Blue Truck's Valentine and the beloved Click series of middle grade graphic novels.\n\nHMH Books & Media is being acquired by News Corp for $349 million in cash and the acquisition is subject to customary closing conditions, including regulatory approvals. In calendar year 2020, HMH Books & Media had strong growth with net sales of $191.7 million, and Adjusted EBITDA of $26.6 million1, based on public filings.\n\nHarperCollins expects to realize immediate cost savings, accumulating to more than $20 million annually within two years, including manufacturing, distribution and other cost efficiencies. HarperCollins also anticipates revenue synergies by leveraging its global scale and further expanding licensing opportunities. The acquisition is expected to close in the fo...