NORTON SIMON, INC., IS PLANNING TO PURCHASE SIMON & SCHUSTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01314R000300090004-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 16, 2016
• Document Release Date: November 9, 2004
• Sequence Number: 4
• Publication Date: May 21, 1970
• Content Type: NSPR

Approved For Release 2001 P88-013148
11MAY1970
0
Norton Simon, Inc., Is Planning
To Purchase Simon & Schuster
The billion-dollar Norton
Simon, Inc., conglomerate an-
pounced an agreement in prin-
ciple yesterday to ? buy the
publishing house of Simon &
Schuster, Inc., for $23.5-million
in cash.
Under the plans, which still
require approval of a final
merger agreement by the
companies and the sharehold-
I ers of Simon & Schuster, Nor-
ton Simon would pay about
$6.63 each for the 3,545,105
shares of the publishing com-
pany stock outstanding.
Simon & Schuster stock,
which is traded over the coun-
ter, had an asking price of
$3.50 a share on Friday and an
i
f $5
25
ki
h
ng pr
ce o
.
as
a s
are
six months ago. ' Leon Shim-
1publishers. The house pub-
lishes trade books, under the
Simon & Shuster and Trident
Press Imprints and paperbacks
under the Pocket Books and
Washington Square Press Im-
prints. Among Its recent hard-
cover successes have been "The
ILove Machine" by Jacqueline
Sussann, "The Selling of the
President" by Joe McGinnlss
and "The Inheritors" by Harold
Robbins.
The company was founded in
1924 by the late Richard Simon
and M. Lincoln Schuster. Mr.
Simon was a piano salesman
and Mr. Schuster the editor of
a motor trade magazine when
a conversation about the novel
"Jean Christophe" led them to
their publishing venture.
$100,000 in First Year
They opened their concern
with $8,000 of savings and,
loans from friends. Mr. Shim
kin, who had worked for the'
firm of Boni & Liveright, joined
the new house in its first six;
months as an accountant.;
Simon & Schuster made $100,-,
000, in its .first year, primarily,
on the success of three cross
word puzzles. books, which
were then a new thing.
In 1939, Mr. Simon, Mr.
Schuster, Mr. Shimkin and
Robert F. de Graff founded
Pocket Books, Inc., the pioneer
in low-price paperbacks for the
mass market. In 1944 both
Simon & Schuster, whose of-
fices are at 630 Fifth Avenue,
kin, the president of the 46-:
year-old publishing house,
Is believed to own about 45 per'
cent of the outstanding shares
.
The merger announcement
contained the standard phrase
that Simon & Schuster would
continue as a separate sub-
sidiary with Mr. Shimkin serv-
ing as chairman of the board.
It is -understood that Mr. Shim-
kin's present post of president
would be filled by an execu-
tive from the McCall Com-
munications Group, a part of
the Norton Simon conglome-
rate.
The announcement of the
merger plans was made by Mr.
Shimkin and David J. Mahoney,
president and chief executive
officer of Norton Simon, Inc.
Mr. Mahoney said the acquisi-
tion could be completed In 60
to 90 days. - , .,
Simon' '& Schuster and' its
offspring, 'pocket 'Books,'. have
peen' s~moni; .,the ?tleadLn
4 .u.1!?.i ~~h~. 41,.01?;V..1 ,4w+
]fisher of popular than of quality
books, although it has had such
successes, as "Catch-22."
'The sales of Simon & Schus-
ter in 1969 were about $37-mil-
lion and Its profits after taxes
were $1,117,000,
The' Norton Simon empire
had its start In Fullerton, Calif.;
is not related to Richard L.
Simon-bought an orange-juice
bottling company in bankruptcy
court for $7,000. Mr. Simon ex-
panded rapidly and later diversi-
fied his interests Into such
fields and steel and. publishing.
Norton Simon, Inc., which is
reporting sales volume of a bil-
lion dollars for the fiscal year
ending June 30, was formed in
1968 by the merger of three
Simon interests-Hunt Foods &
Industries Inc., the Canada D7
Corporation and the McCall
Corporation.
.The conglomerate has hold-
ings in television, motion pic-
tures, records, music publish-
ing, and information-processing.
glomerate last December when
he resigned as a director to
devote full time to his $100-
million .art collection and his
foundations, However, he and
his family are still the largest.
stockholders In the company,'
owning 8.7 per cent of the com
mon shares and 7,4 per cent of
the preferred. It
Mr. Simon was an unsuccess-
ful contender for the Republi-
can nomination for Senator in]
California .two months ago...
It publishes McCalls, Redbook
and Saturday Review. .
. Mr. Simon severed' his last
management'tie: with the con-
it! ,Ivho
Approved For Release 2005/01/11: CIA-RDP88-0131'4R000300090004-0
STAT