The details of Amazon’s planned purchase of Goodreads were not revealed officially (though they are likely to be disclosed in a quarterly SEC filing after the deal closes). For now the most credible information comes from multiple WSJ reporters. First Kara Swisher reported on Friday that “Amazon paid about $150 million…but that number could close in on $200 million, if certain performance metrics are met…. I am still trying to determine how much of the deal was cash — most of it, said sources — and how much was stock.” Then two more WSJ reporters posted that “Amazon will pay […]
Finance
Bertelsmann Backs Food52, Which Will Partner with Random House
In other social online opportunities, Food52, a social site for cooks founded by Amanda Hesser and Merrill Stubbs in 2009, has closed a $2 million round of financing in which Bertelsmann Digital Media Investments is a significant participant. Among their plans is “expanding our publishing platform through an innovative partnership with Random House Inc.” VP business development at the Crown publishing group Ranjana Wingender says, “We are excited to welcome the Food52 investment as part of the Bertelsmann Family – we at Random House have long considered them a leader not just in food content but also as a community of writers.” […]
As Amazon Buys Goodreads, Some Look to Alternatives
The basics have been well reported within minutes of Amazon’s announcement on Thursday after the close the of market. In what is widely recognized as a very smart move by the retailer, they have an agreement to acquire Goodreads for an undisclosed sum. Goodreads was backed by venture capitalist True Ventures, so it was going to be sold to someone. Started seven years ago, the social network for books had been interviewing experienced publishing executives in recent months as part of an exploration of selling books directly from the site to their 16 million members. Goodreads and its staff of […]
Amazon Acquires Goodreads
In what appears to be a definitive strike in consolidating online book discovery under one virtual roof, Amazon announced Thursday afternoon that it acquired Goodreads for an undisclosed sum. The company’s headquarters are expected to remain in San Francisco with the deal set to close in the second quarter of 2013 subject to various closing conditions. Founded in 2006 by Otis Chandler, Goodreads boasts more than 16 million members — vaulting it ahead of Shelfari (which Amazon acquired in 2008), LibraryThing (in which Amazon has a stake after buying AbeBooks in 2008), and Bookish, which finally opened for business earlier […]
Reuters’ Sources Say Penguin Random House Merger to be Approved by EU
Two people have gone ahead and leaked that the European Commission will approve the Penguin Random House merger with no requirement of any concessions on or before their stated deadline of April 5. An EC spokesperson declined to comment. The deal has already been cleared in the US, Australia and New Zealand. Canada has been the most quiet investigation so far, with no stated deadline (they won’t even acknowledge publicly that they are reviewing the deal).
Random House Posts Big Profits on Fifty Shades
Random House had sales of €2.142 billion (up 393 million euros, or 22 percent) and record operating EBIT of 325 million euros (a 75 percent increase over 185 million euros a year ago) in 2012, on the extraordinary sales of over 70 million copies of EL James’s Fifty Shades trilogy sold in English, German and Spanish editions. The company was strong around the world, as it “posted year-on-year increases in revenue and operating EBIT across all its territories.” Results for the second half of the fiscal year by itself were €1.195 billion in sales and operating EBIT of €212 million. At parent […]