Penguin Random House’s CEO steps down as deal to acquire Simon & Schuster collapses

Penguin Random House’s chief executive officer, Markus Dohle, who has been leading the company since July 2013, stepped down from his role late last week. It was reported that he made the decision to resign after the U.S. government blocked its $2.2 billion deal to buy its rival company, Simon & Schuster.

According to BBC News, Dohle will officially leave his office at Penguin Random House at the end of the year. The New York-headquartered publishing firm confirmed the CEO’s resignation by stating the move was Dohle’s “own request and on the best of mutual terms."

He also confirmed that he is leaving the company after a federal judge ruled in favor of the U.S. government that is trying to stop Penguin Random House’s acquisition of Simon & Schuster. The officials argued that the merger would diminish the opportunities and pay of writers.

“Following the antitrust decision in the U.S. against the merger of Penguin Random House and Simon & Schuster, I have decided, after nearly 15 years on the executive board of Bertelsmann and at the helm of our global publishing business, to hand over the next chapter of Penguin Random House to new leadership,” the outgoing CEO said in a statement. “Penguin Random House has a great future ahead, and I very much look forward to continuing to serve Bertelsmann in an advisory capacity.”

At any rate, the company’s German owner, Bertelsmann media company, said that Penguin Random House would continue to search for smaller companies to acquire in the U.S. and other regions where they have been operating.

With Dohle’s exit, Nihar Malaviya, the publishing house’s US chief, will serve as interim CEO starting January 1, 2023. He was revealed to have worked closely with Dohle for the past 15 years, so he is already familiar with the workings of the company.

Finally, The New York Times reported the unexpected change in leadership comes at a time when things are difficult for Penguin Random House. This is because it has been struggling to grow and maintain its market share. The original plan was to boost the numbers through the acquisition of Simon & Schuster, which, unfortunately, will never happen.