Simon & Schuster for sale, says CEO of ViacomCBS

"Simon & Schuster is not a basic asset. It is not video-based," said Bob Bakish at an investor research conference. ; strategic alternatives for the book publisher.

ViacomCBS CEO Bob Bakish announced Wednesday that book publisher Simon & Schuster is on sale.

"We have determined that Simon & Schuster is not a core asset of the business. It is not based on video; there is no significant connectivity with our business at large. At the same time, there is no doubt that this is a brand asset it is very valuable. I have received several unsolicited incoming calls about this asset, "said Bakish at the Morgan Stanley Technology, Media & Telecom conference in San Francisco during a live broadcast session.

"So, as this market stabilizes, we will initiate a process and seek strategic alternatives for Simon & Schuster," he added.

Carolyn Reidy, president and chief executive officer of the book's publisher, in an internal memo to staff Wednesday, confirmed that her parent company had started "the process by which ViacomCBS could potentially sell Simon & Schuster".

"Whatever the outcome, this process does not change what we know to be true of Simon & Schuster: we are a large publishing house and one of the best known publishing brands in the world. world, with an incredible legacy and a bright future. We have a tremendous record-breaking bestseller production track in all categories and formats, and for readers of all ages. We have a history of strong and enduring relationships with our authors , and we will continue to bring important voices to readers around the world, both with our current publication and our rich list of eternally favorite titles, "added Reidy in the note obtained by The Hollywood Reporter.

Bakish on the call also said Black Rock, CBS 'longtime headquarters in Manhattan, as another asset of the combined Viacom and CBS entity that is recruiting interested buyers.

"The opportunities for value creation, including the accretive dispositions of certain things that we don't necessarily need to execute our strategy – Black Rock, Simon & Schuster – it's a great value creation opportunity "Bakish told investors.

His presentation at the investor conference followed ViacomCBS last month, in its first earnings report since the combination of Viacom and CBS Corp. in December, posting a quarterly loss that disappointed Wall Street, resulting in an 18% decline in its shares that day. Analysts said the merged company must prove that it can grow despite the ongoing problems of cable cutting and classification in the digital age due to the young target audience of many of its cable networks.

Bakish during his presentation at the Morgan Stanley conference focused on promoting synergies, cost savings and the generation of free cash flow from recombination as he spoke in context of market skepticism. ViacomCBS called the last quarter of 2019 "transitory", saying it was affected by "operational elements which should be mitigated by the benefits of the combined company".

Investors have also raised questions about ViacomCBS 'streaming strategy, which doesn't focus on just one approach. Bakish recently argued that the future online video landscape would be very similar to linear television in that it would offer free, "high-paying" and paid offers, with the company ready to play in all three areas. Pluto TV is ViacomCBS 'free streaming platform, Showtime OTT is its premium paid offer, and the company is also working on a new "high salary" streaming offer.

"We have real momentum and an increasing scale in streaming, as we said on the call," Bakish reiterated on Wednesday.

Last month, ViacomCBS announced that it would expand its CBS All Access service to become the backbone of an "House of Brands" service, which has yet to be named. It will add content from Nickelodeon, Comedy Central, MTV, BET and other channels.

ViacomCBS, as part of an agreement announced in late 2019, is expected to acquire a 49% stake in Miramax, which has a library of more than 700 titles, including Oscar winners such as pulp Fiction, Chicago, Yell, Goodwill hunting and There is no country for old people, for $ 375 million in an agreement with BeIN Media Group. Paramount Pictures also entered into an exclusive long-term distribution agreement for the Miramax Cinematheque and an exclusive long-term first-look agreement allowing Paramount "to develop, produce, finance and distribute new film and television projects based on Miramax intellectual property ".