Paramount has agreed to sell Simon & Schuster to private equity firm KKR for $1.6 billion in cash, after more than three years of trying to offload the book publishing powerhouse.

"The proceeds will give Paramount additional financial flexibility and greater ability to create long-term value for shareholders, while also delivering our balance sheet," Bob Bakish, president and CEO of Paramount Global, said in a statement.

Paramount posted Simon & Schuster for sale in 2020.

In November 2022, Paramount ended its agreement to sell Simon & Schuster to Penguin Random House in what would have been a $2.2 billion deal.

Both are among the "Big Five" of major US book publishers -- the potential deal raised antitrust concerns.

The Justice Department sued to stop the merger, one of the first major antitrust actions from the Biden administration. In October 2022, US District Court Judge Florence Pan ruled the combination of the book publishing giants would illegally reduce competition, arguing that the combination of the two book business giants would illegally reduce competition.

This is a developing story and will be updated.