Hungarian government-backed company acquires largest bookstore chain: potential federal intervention on the horizon?
Hungarian Writers Concerned about Government’s Acquisition of Libri Bookstore
The Hungarian writers’ community has expressed concerns regarding the recent acquisition of Libri book store by a subsidiary of the government-affiliated foundation MCC. They fear that this acquisition may result in unforeseeable and devastating consequences for the literary market in Hungary.
Dénes Krusovszky, a prominent Hungarian writer, predicts that a significant portion of the book market will now be under state control instead of being driven by market forces. He sees this as an unfavorable development that may hinder the diversity and competitiveness of the literary industry. Gergely Péterfy, another renowned writer, suggests that the acquisition was influenced by the System of National Cooperation (NER), further intensifying their apprehensions.
The purchase was made by SQ Invest Ltd., a subsidiary of Mathias Corvinus Collegium Foundation, which acquired a 67.48 percent stake in the Libri Group. With this acquisition, MCC has become the majority owner of the bookstore chain, holding a 98.41 percent stake. Despite this change in ownership, there will be no alterations in the management structure of the group. The former majority shareholder will continue to support the development of the Libri Group as a board member, as confirmed by MCC.
Krusovszky raised his concerns on Facebook, emphasizing the potentially grave consequences of this acquisition. He highlights that state control over a significant portion of the book market may lead to unpredictable outcomes. Additionally, he questions the funding of MCC, which includes shares from MOL, a company that still maintains ties with Russia. Krusovszky argues that this indirectly connects every purchase made at Libri to the Russian state and, consequently, to President Putin.
Meanwhile, Gergely Péterfy recommends that authors and editors support independent bookstores such as Felhő Café Books and the Hungarian Republic of Umbria. He expects that NER’s involvement in Libri’s acquisition will have long-lasting negative effects, potentially leading to catastrophic consequences for the literary community.
The readers’ responses to these concerns vary, with some expressing outrage and others showing support for the acquisition. Some individuals even plan to boycott Libri by canceling their loyalty cards.
In contrast, the Hungarian Writers’ Association released a statement welcoming the market changes that may result from Libri’s ownership change. They believe that MCC’s majority ownership can contribute to a more balanced market. The Writers’ Union hopes that Libri prioritizes promoting quality offerings from independent literary publishers and expresses willingness for dialogue and professional cooperation.
As the situation unfolds, the Hungarian literary community remains deeply divided about the future of Libri and the potential impact it may have on the country’s literary landscape.
Source: Index
