The all-cash deal is likely to close during the third quarter. Harlequin, which NWS is acquiring from The Toronto Star-publisher Torstar will be integrated into News Corp.’s HarperCollins Publishers book business, the New York Times notes.
Harlequin, which publishes books in 34 languages for sale in 102 countries, has been facing declining revenue due to ebook price competition and shifting tastes in the romance genre. Harlequin will keep its Toronto headquarters after the NWS acquisition.
Torstar purchased Harlequin in 1975. The Canadian newspaper publisher said it would use a portion of the cash from the deal to reduce debt and retain the rest for other “opportunities.”
NWS shares slipped slightly in Friday morning trading. NWS shares closed at $16.76 a share on Thursday.
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