The merger of Penguin and Random House (except for Random House Germany) into a single company first announced October 29, 2012 has now officially been completed. Headquartered in New York, the new company employs over 10,000 people, and publishes over 15,000 new titles annually across 250 imprints. For 2012, Penguin Random House would have had pro forma sales of 3.2 billion euros (or about $4.16 billion), and operating profit of 427 million euros. (Bertelsmann’s version of the release says the company “will generate annual revenues of approximately €3 billion ($3.9 billion).” A new starting logo combines the colophons of the two […]
Finance
Hyperion’s Adult List Sells to The Logical Buyer, Hachette
Hyperion’s adult trade list of over 1,000 titles, plus 25 new titles under contract but not yet published, are being sold to Hachette Book Group — which was always the most likely purchaser, since they took over distribution for Hyperion and Disney Publishing under long-term contract earlier this year. While a WSJ article from March on the sale gave a vague impression of what Disney intended to sell, those familiar with the offering book have said all along the intention was to sell all of Hyperion’s adult books with the exception of a small number of Disney-related titles. Those “franchise” […]
Cengage Bankruptcy Filing Expected Shortly
Cengage’s long slow, reckoning with a bankruptcy filing — the only way the company can deal with its mountain of more than $5 billion in debt — is nearing its culmination. As previously reported, a payment of $225 million due July 5 remains the trigger point. The WSJ essentially confirms the obvious: Cengage “is preparing to file for bankruptcy protection in the coming days, said several people familiar with the plans…currently negotiating a prearranged bankruptcy restructuring with senior creditors.” But the actual filing could come “a couple of days after July 5 depending on how the negotiations progress, some of […]
BN Shares Fall 17 Percent, Then Recover Slightly
Barnes & Noble stock fell more than 17 percent on Tuesday after their poor earnings report, falling roughly $3.20 a share to close at $15.61. But the stock has bounced back a little this morning, moving back over $16 a share as part of a general market rally. One thing missing from yesterday’s release and investor discussion was any characterization of Nook’s share of the ebook market. In written testimony offered as part of the recently Apple ebook pricing trial, one prosecution expert witness is said to have concluded from retailer-supplied data that in February 2013 that Barnes & Noble’s […]
Indigo’s Plans Include In-Store Boutiques, Apple Products, and International Expansion
Canada’s dominant bookseller Indigo announced a variety of new plans. They will redesign many of their superstores to feature a variety of “store within a store” boutiques, such as Indigo Kids, Indigo Tech and Indigo Home. In 2014, they will begin selling Apple products in 40 of their stores. More vaguely still — but provocative — cheif executive Heather Reisman said they have plans to open bookstores outside of Canada in 2 years, “though she declined to say which markets the retailer is considering.” Similarly to Barnes & Noble (though Indigo headed in this direction earlier), “the bookseller has been […]
Barnes & Noble Has Big Declines At Retail Stores and Nook; Takes $151 Million Charge and Will “Partner” On Color Tablets
Barnes & Noble reported another poor quarter to end fiscal 2013: Sales of $1.28 billion were down 7.4 percent from $1.38 billion a year ago, and the net loss doubled to $118.6 million, or $2.11 per share. Both results were far worse than analysts had forecast (as we covered yesterday). Results “were adversely impacted by Nook inventory charges”–they took $133 million in inventory charges in the fourth quarter on device markdowns and a goodwill impairment charge of $18.3 million in Nook selling and administrative expenses “as recurring losses have led to revisions in its strategic plans.” Even with the discounting, the […]