The Department of Justice’s case against the proposed merger of Simon & Schuster with Penguin Random House entered its third week on Monday in Washington, DC.

Defense attorney Dan Petrocelli called PRH US CEO Madeline McIntosh to detail “the lifespan of a book,” according to Jim MilliotPublishers Weekly editorial director. In her testimony, PW reported, McIntosh described the relationship between author advances and a publisher’s business plans.

“McIntosh explained that the process for making an offer on a book is subjective and that advances can’t be predicted,” Milliot tells me. “McIntosh also made the point several times that the size of the advance plays no role in marketing plans for a book.”

Click below to listen to the latest episode of the Velocity of Content podcast.

Defense Witnesses Testify in Publishing Antitrust Case

On Monday, US District Court Judge Florence Pan announced she would exclude testimony from Manuel Sansigre, PRH senior vice president and global head of mergers and acquisitions. In her ruling, Pan said Sansigre’s financial statements, including his revenue projections, could be not independently verified as required by precedent.

Sansigre’s testimony included the possibility of layoffs if the merger were approved. Such “headcount synergies,” as Sansigre called them, set off alarms for staff at the two publishing houses.

“Sansigre said he had identified ‘about 70’ people who had overlapping roles at the two companies,” PW reported.


Author: Christopher Kenneally

Christopher Kenneally hosts CCC's Velocity of Content podcast series, which debuted in 2006 and is the longest continuously running podcast covering the publishing industry. As CCC's Senior Director, Marketing, he is responsible for organizing and hosting programs that address the business needs of all stakeholders in publishing and research. His reporting has appeared in the New York Times, Boston Globe, Los Angeles Times, The Independent (London), WBUR-FM, NPR, and WGBH-TV.
Don't Miss a Post

Subscribe to the award-winning
Velocity of Content blog