Start-up Zola Books has raised another $3.9 million in financing, “to grow [their] engineering and strategic partnership initiatives.” (The $5.1 million figure you might have seen includes previous funding.) New named investors include Cablevision founder Charles Dolan, Bob Kohn, Jeff Pulver, David Placek, director Paul Saltzman (Prom Night in Mississippi); Peter Sundman, and early-stage investor fund Radcliff Group. More authors connected to Zola founder Joe Regal’s literary agency have also participated, with Gregory David Roberts (Shantaram) and Martin Clark joining previous participants including Audrey Niffenegger and Josh Bazell. Zola has acquired exclusive ebook rights for five backlist works by Joan […]
Finance
Houghton IPO to Start Trading November 14; Chegg Offering Coming, Too
Houghton Mifflin Harcourt formally announced their planned IPO on Friday, offering 18.25 million shares (with another 2.7 million shares on option to the underwriters for overallotments) at an expected price of $14 to $16 a share. The stock, listing on the NASDAQ under the symbol HMHC, is expected to start trading on November 14. The official investor roadshow begins next Monday. The underwriters are putting the approximate deal size at $275 million, at the midpoint of the expected pricing. As indicated previously, the company itself will receive no proceeds from the offering, which is designed to let their long-suffering investors […]
Soft College Sales Hold Down Pearson Profits
Pearson issue a third-quarter overview, reiterating guidance for the full year that anticipates lower profits than in 2012. While sales are up compared to a year, the third quarter was soft (sales were up 7 percent at the end of June; now “continuing sales” are up 4 percent for the first nine months). North American education margins are lower due to “a weak trading environment for college textbook publishing,” as well as “start-up costs associated with new services contracts and by product investment ahead of the implementation of new Common Core standards.” The Penguin Random House merger also “reduces Pearson’s […]
Corporate: Apple, AudioNoGo, and Lagardere
Apple reported fiscal fourth quarter results for the period ending September 28 after the close of the market on Monday. The company sold 14.1 million iPads in the period, just barely ahead of sales in the same quarter a year ago, with strong iPhone sales of almost 34 million units. They have sold approximately 172 million iPads since the launch of the line in 2010. Sales rose to $37.5 billion, as net profit fell $700 million to $7.5 billion. Lagardere has concluded a long-running dispute with Vivendi over the valuation of their stake in Canal+ France. In a compromise, Lagardere will […]
Ruckus Is Sold
Ruckus Media has found some refuge with mobile app company KiwiTech, which is acquiring a 75 percent stake in the digital children’s media company that has struggled to find a lasting business model. Ruckus founder and ceo Rick Richter will depart following the sale, though he will continue to serve as an advisor. Chief content officer Jason Root will move up to ceo of Ruckus, reporting to KiwiTech ceo Rakesh Gupta. The company’s Wilton, CT office will close, yet Ruckus will still “remain Connecticut based.” Venture capital firm Alsop Louie Partners, which led a $3.5 million series A funding round […]
Briefs: AudioGo Suspends Operations Pending Sale; Inkling Acquires OpenAir
UK-based audiobook publisher AudioGo has suspended operations and is looking for an investment or outright sale, the company’s head of sales and marketing Rachel Josephson confirmed to the the Bookseller. She added: “There is a considerable amount of interest in AudioGO and we are hopeful of achieving a swift resolution. Protecting and respecting the rights of everyone that we work with is uppermost in our considerations and we are grateful for the fantastic support we have received from our colleagues throughout the industry.” The company recently sold its US-based arm Blackstone Audio back to its founders, just ten months after […]