What Simon & Schuster's New Board Means for Book Publishing

S&S announced the formation of a new board of directors. To say it is formidable is an understatement.

I’m short on time today, so let’s jump right into this. Yesterday, Simon & Schuster announced a new seven-member board of directors comprising CEO Jonathan Karp, three executives from private equity firm KKR, including Richard Sarnoff, chairman of media for KKR’s American division and who is now S&S’s chairman, Ted Oberwager, and Chresten Knaff. The remainder of the board is comprised of former CEO of PRH Madeline McIntosh, former COO of TikTok V Pappas, and Kareem Daniel, who was most recently the head of Disney’s Media and Entertainment Distribution division. Daniel also serves on the board of McDonald’s. Ted Oberwager leads the gaming, entertainment, media, and sports verticals within KKR’s Americas private equity and sits on Skydance Media, AppLovin, OverDrive, and PlayOn boards! Sports. Knaff is a director at KKR and a member of its media and software industry teams. They lead KKR’s publishing, media, and tech investments.

I. Why S&S’s new board of directors matters

A board of directors oversees corporate activities and performance at a high level. While Jonathan Karp sits on the board and is CEO of S&S, he must still report to the other board members. The board must approve decisions about S&S’s expansion, brand identity, funding, and investment activities. Board members will have input on the direction of S&S in the future and will interact with the C-Suite regularly.

I am pretty confident PRH will regret Madeline McIntosh’s departure now that she works for the same publisher they attempted to acquire. Her depth of knowledge about how PRH operates should make Bertelsmann nervous. V Pappas, former COO of TikTok, was primarily responsible for the emergence and evolution of BookTok. S&S publishes Colleen Hoover, who, in case you’ve been living on Mars, is one of the most popular (if not the most popular) authors on BookTok. What Pappas brings to S&S’s board is what publishers crave: consumer data and expertise in consumer behavior. Before her role at TikTok, Pappas was the Global Head of Creative Insights at YouTube, where one of her key achievements was helping develop the YouTube Creator Playbook. Daniel, the former Disney exec, has extensive experience in distribution channels, streaming, sports, and film and was involved in Disney Publishing. He has significant experience in maximizing intellectual property.

The fact that S&S now has a breadth of expertise from all corners of tech, entertainment, and publishing should make other publishers nervous. This is not a stodgy old guy board. This board of directors will reimagine book publishing in a way I hoped would happen. These are not people with a “let’s publish something and see if it sticks” philosophy. Instead, they are tuned into what consumers do when not reading books, which this industry needs. Further, S&S is currently a private company. A board is required if it were to go public, and I assume that will happen.

II. What S&S’s new board means for the book industry writ large

Simply put, appointing a new board at S&S—especially this one—means competition between the big five will be more intense. I don’t think it is an overstatement to say that S&S will be the first stop for many agents. It won’t happen immediately, but as the new board implements changes, which they will, S&S has the potential to become a multimedia company that benefits authors in a way other publishers can’t. They may ditch Audible and expand their audiobook division, where growth continues. They could negotiate an overall first-look deal with Netflix for intellectual property. Now that Paramount Global is out of the picture, there is freedom to do that.

Additionally, when board members have expertise in monetizing intellectual property from a book into the digital realm, look out. The relationships that Pappas and Daniel bring to the table give S&S the ability to form partnerships with brands advantageously for authors. Time will tell what that looks like.

III. What does S&S’s new board mean for authors?

Given its new board members and their respective experience, S&S will probably tighten every imprint’s list. This means the company will look closely at what editors acquire and why. The “why” is most important here. As I’ve previously written, each book editor possesses their acquisition sensibilities. Suppose an editor wants to acquire a book they are passionate about. In that case, I imagine the new board will require them to be specific about the audience for the book and what IP (intellectual property) possibilities it holds. It will no longer be enough to say that the audience for X will love book Y and author platforms will be assessed differently. Will follower count matter as much as engagement? No, it will not. Will views rule the roost? Yes. Might they develop a mechanism similar to streaming companies that compile data on what percentage of viewers abandon a series? Possibly. For example, Netflix knows what series are watched to completion versus the ones people never finish watching, and that is why cancellations occur. Profitability = viewers who continuously finish watching a series. Why? It means a series is viable for additional seasons, word-of-mouth, advertisers, and subscribers.

As much as some people would prefer book publishing to remain precious and literary, it is still a for-profit business (except for non-profit publishers). There is, of course, a place for literary books, and some sell pretty well. Conversely, commercially successful books and backlist titles pay the bills. We can argue about the evils of capitalism all day, but it won’t negate the fact that consumerism drives profit, and profit keeps companies in business. Media that rely on advertising revenue are conducting layoffs because, in many ways, the ad business will never recover from the pandemic. However, solely blaming the pandemic for the decline in advertising would diminish the strength of brands that have discovered how to reach consumers directly. The most successful brands have found a balance between marketing and publicity without spending on traditional advertising. Instead, they rely on a network of influencers known for igniting consumer conversations without directly interacting with them in comment sections. Hill House, home of the Nap Dress, is a prime example. It is not just a brand; it is a movement. The company is doing so well that they sent gift cards to their best customers for the holidays (I don’t spend a ton there, but I received a $150 gift card, which will surely make me a return customer).

Authors with existing deals with S&S shouldn’t fret too much, though I imagine agents and editors will have interesting conversations about what happens next in the coming months.

IV. What does S&S’s new board mean for employees?

This is a tricky question because as much as I’d like to say that imprints will stay intact, that seems unlikely. Jonathan Karp knows which imprints aren’t performing well, but he must now work with the board to decide which, if any, should shutter. It would be naive to think that KKR’s acquisition of S&S and implementing a new board will leave the company untouched. There are imprints in every publishing company that underperform but are shown mercy because of who runs them. This is not to say that there will be the proverbial bloodbath that people assume comes with private equity acquisitions, but there will be changes. We’ll find out what those are soon.

V. How is S&S different from other Big Five publishers?

S&S is now the largest privately owned publisher. It is no longer beholden to a media conglomerate as it was when Paramount Global held it. The new board is focused on S&S, whereas the board of Bertelsmann must divide its attention among several holdings (a holding subsidiary it owns). S&S has far more freedom to shake things up in the industry, which might be exactly what publishing needs. Only time will tell.

Questions, etc.: publishingconfidential@gmail.com (I’m behind answering emails here, so bear with me).

Business inquiries/interview requests: kathleen@kmspr.com

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End Notes:

What I’m listening to: This episode of

Brad Listi

’s Otherppl Podcast with Lauren Cerand will teach you a lot about the past and present state of book publicity. Lauren is a wonderful literary publicist who has been generous to me since I went out alone in January 2023. Brad was nice enough to interview me earlier this fall (subscribe to his Substack!). Listen here.

What I’m Watching: I’m catching up on The Morning Show. If you’re looking for a sweet Christmas movie, watch Family Switch on Netflix. It’s cute and funny.

What I’m Reading: Even if you aren’t familiar with Rachel Hollis and her late husband, Dave Hollis, read this WSJ Magazine piece. It’s excellent and shows that all is not what some self-help influencer’s lives seem.

What I’m buying: I promised gift guides, which are coming. In the meantime, these are my new favorite candles.