Pearson Revises Deal for Simon & Schuster

British media group Pearson said it will retain more of Simon & Schuster’s publishing businesses after changing the terms of its deal with U.S. buyout firm Hicks, Muse, Tate & Furst Inc. Pearson agreed in May to buy Simon & Schuster’s educational, professional and reference publishing business from New York-based Viacom Inc. for $4.6 billion, then sell the professional and reference units to Hicks Muse for $1 billion. Under the new terms, Hicks will pay $860 million and Pearson will keep Simon & Schuster’s international business and professional divisions, which had revenue of $43 million last year. Pearson also will get a five-year deal to distribute Hicks’ products outside the United States, a pact that would have meant revenue of about $70 million last year, Pearson said. Pearson hopes to complete the Simon & Schuster purchase in the second half of 1998. Viacom is keeping Simon & Schuster’s consumer publishing business.