Paramount Bid Wins Auction of Macmillan Book Business : Publishing: Analysts say the divisions are a good match, though more consolidation may close doors to new authors.

NEW YORK —  Paramount Communications Inc., the subject of a raging takeover battle, won a takeover battle of its own Wednesday when it agreed to buy Macmillan Publishing Co. for $553 million.

The acquisition solidifies Paramount’s position as the nation’s largest book publisher and continues a rapid--some say unhealthy--consolidation of the book industry. The deal is expected to have little impact on the battle for Paramount, which pits Viacom Inc. against QVC Network Inc.

On that front Wednesday, QVC remained in negotiations with federal antitrust regulators to resolve the role of 22% owner Liberty Media Corp., the affiliate of cable television giant Tele-Communications Inc. Once Liberty’s role is clarified, BellSouth Corp. is expected to join QVC’s bid. Liberty’s role could be decided as early as today.

Macmillan, once the crown jewel of the late Robert Maxwell’s U.S. publishing company, was auctioned off as part of the liquidation of the bankrupt Maxwell empire. Paramount’s bid topped offers from Harcourt General, K-III Holdings and Pearson.

“Over the past decade, we have built a small trade publishing business into one of the world’s leading book publishers,” Paramount Chairman Martin Davis said in a statement. “The acquisition of Macmillan Publishing . . . is the latest chapter in that evolution.”

Analysts and industry executives agreed that Macmillan, with its strengths in educational, children’s and professional publishing--and a list of classic authors that includes F. Scott Fitzgerald and Ernest Hemingway--is a good match for Paramount. “Properties like this are few and far between. . . . Strategically, it’s a good move for Paramount,” said Martin Romm, an analyst at First Boston Corp.

But not everyone is certain that it’s a good thing for the book industry. For starters, Paramount is expected to consolidate many of Macmillan’s operations with its own, slashing the Macmillan payroll dramatically and eliminating some divisions.

“They want to take the copyrights and the backlists and get rid of the people,” said the head of one publishing company. Macmillan employs about 500 people.

There is also concern among book professionals that consolidation in the business is limiting the number of outlets for authors, especially those whose books don’t promise to be bestsellers.

The industry was once dominated by family-owned companies, each with its own creative approach, but over the past decade control has shifted to media conglomerates such as Paramount, Time Warner, News Corp., Bertelsmann and Advance Publications.

Paramount’s publishing division, for example, is centered around the Simon & Schuster imprint. Macmillan, itself an agglomeration of companies, includes Scribner’s and Atheneum. Bertelsmann owns Bantam, Doubleday and Dell.

“This has reached horrendous proportions--it’s anti-cultural,” said Roger Straus, president of Farrar, Straus & Giroux, one of the few remaining independents. “Macmillan and Simon & Schuster--they’re not going to be interested in writers of belles-lettres and poetry and first novels.”

And the consolidation trend isn’t over. Hearst Corp. is seeking a buyer for its book operations, which include William Morrow and Avon. Paramount, Bantam and Hyperion, a division of Disney, are said to be interested.

“It’s sad, all these houses eating each other up,” said Sarah Lazin, a New York literary agent. “The more they get bought up, the more they lose their independent voices.”

Still, not everyone is worried. Morton Janklow, a New York agent who handles many high-profile authors, said: “There has been a tremendous amount of consolidation, which has the effect of reducing the number of buyers, and thus there is some reason for concern. But that has not been a problem in this office.”

Macmillan was acquired by Maxwell for $2.6 billion in 1988, a price that was widely considered much too high. Some assets were subsequently sold. The publishing company currently has revenue of about $300 million. Paramount hopes to complete the transaction within 90 days.

Paramount shares fell 50 cents to $80.50 on the New York Stock Exchange on Wednesday.

As for its two suitors, QVC added 25 cents to close at $52.25. Viacom Class A shares fell $1.125 to $55.375, and Viacom Class B lost $1 to close at $47.50.