Following on a widely cited report from the WSJ that News Corp was considering splitting off its publishing division — including HarperCollins — from the rest of its business, the company confirmed that “it is considering a restructuring to separate its business into two distinct publicly traded companies,” with the NYT adding that further news about the possible spinoff could come as soon as this week. While the move has been speculated about for several years, more seriously since the phone-hacking scandal broke open last summer, company ceo Rupert Murdoch has apparently and “recently warmed to the idea”, which would […]
Finance
Barnes & Noble Results Disappoint Again, But Bookstore Comps Are Up 4.5 Percent
Barnes & Noble continues their string of earnings disappointments with fourth quarter sales and losses that were not as good as either the official analyst estimates or the Wall Street “whisper numbers.” The chain recorded fourth quarter sales of $1.38 billion, only $5 million more than a year ago, and a consolidated net loss of $57.7 million, or $1.08 per share. For the full fiscal year, sales of $7.1 billion rose just 2 percent and the consolidated net loss was $68.9 million, or $1.41 per share. As you would expect, shares are trading down this morning on the missed targets, […]
Phaidon Hires Banker, Seeks Buyer
Phaidon Press has retained investment bankers Greenhill to show the publisher to prospective buyers. Current owner Richard Schlagman bought Phaidon out of bankruptcy in 1990 and “said that he had decided that it was time for another owner to lead its transition from a largely print business to the digital era of iPads, Kindles and other ereading devices.” He admits that Phaidon underwent “retrenchment” in 2009 and 2010 by says the company is “profitable and growing.” The FT says documents filed with the UK’s Companies House show sales of £25 million in the fiscal year ending June 2011 were up […]
Another Barnes & Noble Shareholder Reduces Stake
Following investor Ron Burkle’s spinoff of Barnes & Noble shares from his various investment funds to individual investors, another block holder in the bookseller announced a reduction in their holdings. Mutual fund company Fidelity said in an SEC filing that as of May 31 their 10 percent stake in BN was reduced to a 1.956 percent share (comprising 1.177 million shares of stock). The larger holding had been revealed in February, and was acquired as of December 31, 2011. BN’s stock has been under continuing downward pressure, probably because of these large sellers over the past few weeks. Shares closed […]
Sainsbury’s Relieves HMV of Anobii
UK supermarket chain Sainsbury’s has taken HMV’s 45 percent stake in ebook social network site Anobii off of their hands for a mighty £1. They are making an additional, unspecified “investment in the future” of Anobii that will provide them a total controlling share of what is “anticipated” as a 64 percent stake. HarperCollins, Penguin and Random House UK will remain as minority partners, presumably with some dilution as the result of Sainsbury’s additional investment. HMV paid $3.25 million for their Anobii holding in early 2011, and recorded a £1 million loss in the most recent year on Anobii and another […]
Warner’s TV Unit Buys Alloy Entertainment
Alloy Entertainment has been acquired by Warner Bros. Television Group, purchasing the company from an investor group led by Zelnick Media. Zelnick and their partners took Alloy private in mid-2010 for $126.5 million, with senior management investing in the purchase. So it’s no surprise that Alloy’s top executive Leslie Morgenstern will continue to run the unit. The company is best-known for its television series, including Gossip Girl, The Vampire Diaries, Pretty Little Liars, and The Lying Game–all based on books developed by Alloy, and many already produced and distributed by Warner. The purchase price was not disclosed but a “person familiar” with the […]