Per the article we clipped yesterday, moving at the speed of bureaucracy, on Friday the European Commission published its preliminary finding that the 2003 tax agreement between Luxembourg and Amazon’s European holding company based in that country violates EU treaties. “The Commission is of the opinion that the Amazon ruling [from Luxembourg] does not comply with the arm’s length principle. Accordingly, the Commission is of the opinion that through the contested tax ruling the Luxembourgish authorities confer an advantage on Amazon. That advantage is obtained every year and on-going….” Part of what’s at issue is that the 2003 ruling was issued in a […]
Finance
Macmillan Science and Education to Merge with Springer Science
In a structure reminiscent of the Penguin Random House merger, two science and education giants are coming together in a cashless merger: Holtzbrinck’s Macmillan Science and Education (comprising Nature, Palgrave Macmillan and Macmillan Education globally but not in the US) is combining with Springer Science+Business Media (owned by funds advised by BCP), in “a strategic transaction…aimed at securing the long-term growth of both businesses.” Holtzbrinck will hold a 53 percent stake in the combined entity, with the management board comprising Derk Haank (ceo), Annette Thomas (chief scientific officer), Martin Mos (coo) and Ulrich Vest (coo). The supervisory board features three people from Holtzbrinck and […]
Recorded Books Acquires Tantor Media
Recorded Books has acquired audio publisher Tantor Media, with a catalog of approximately 5,000 titles. Sale terms were not officially disclosed but the NYT reports the price was “about $25 million.” Private equity firm Wasserstein & Co. acquired Recorded Books from Haights Cross Communications a little less than a year ago, and then they bought HighBridge Audio from Workman Publishing in April, which was integrated into Recorded Books. Wasserstein co-managing partner Anup Bagaria tells the NYT, “We’ve taken a sleepy business and really accelerated growth” through acquisitions and organic improvements. Tantor will continue to operate out of its current Old Saybrook, CT facility. Jones Day […]
Sales Rise at Penguin Random House — Thanks to Foreign Exchange
The most important development you didn’t read about in anyone’s year-end or 2015 preview pieces is the precipitous fall in the value of the euro. Earlier on Monday the central European currency hit a 9-year low against the dollar. The decline, which started in the middle of 2014, has gained steam over the last two weeks and analysts are quickly revising their predictions for further drops during 2015. With a round of quantitative easing still expected from the European Central Bank and Greece once again considering the possibility of leaving the euro zone, Euro weakness is expected to continue. What […]
Briefs: Shandler to Run New Morrow Line, Zuckerberg’s Year In Books, and More
Former Little, Brown editorial director Geoff Shandler joins William Morrow tomorrow as vp, editorial director for the nonfiction portion of “a new line of eminent nonfiction and literary fiction” that the division is launching. Liate Stehlik says in a memo the new line “will seek to investigate, inform, entertain, and inspire conversation, highlighting both established bestselling authors as well as introducing talented new voices.” Facebook ceo Mark Zuckerberg made a very public resolution to read a new book every two weeks throughout 2015, “with an emphasis on learning about different cultures, beliefs, histories and technologies.” Under the banner of A Year […]
BN Buys Back Pearson Shares in Nook, Too
When Barnes & Noble bought back Microsoft’s 16.8 percent stake in Nook Media earlier this month for $125 million in cash and stock, they gave Pearson an option to sell back their Nook shares as well. In a filing with the SEC Tuesday morning, BN announced they purchased Pearson’s stake on December 22 for $13.75 million and 602,927 shares of its common stock. The buyback is at the same reduced valuation as the Microsoft repurchase, down from the $89.5 million Pearson paid in 2012 for their 5 percent stake in Nook Media. The deal is what ceo Michael Huseby earlier termed a “tag-along right” that […]