The Federal Trade Commission is reportedly conducting a “preliminary nonpublic investigation” about booksellers’ use of major wholesalers, Shelf Awareness reports, and telling some interview subjects that the queries are related to the possibility of Ingram acquiring Baker & Taylor. One person interviewed characterized it as a “fact finding” mission to investigate the effects of a consolidation that would leave the industry with a single major wholesaler, servicing both retail and library markets. ABA CEO Oren Teicher said, “To our knowledge, there has never been an instance in the book business when the elimination of competition–and a further concentration of decision-making in fewer hands–has […]
Finance
As Brazilian Book Trade Struggles, A Call for Support
Brazil’s book trade is suffering mightily from bankruptcy reorganization filings over the past month from the country’s two largest bookstore chains, Cultura and Saraiva. The latter reported debt of approximately $168 million, and among their top creditors is Editora Schwarcz / Companhia das Letras — where Penguin Random House recently boosted their stake to a majority share — which is owed close to $5 million. Publisher Luis Schwarcz explained the situation recently in an open “love letter to books” that is being passed around widely. He notes, “I experienced one of the worst moments of my personal and professional life when, […]
For the Record: Riggios Gave More Shares to Foundation
An amended 13D filing with the SEC indicates that Barnes & Noble executive chairman Len Riggio and his wife Louise gave 2.8 million shares of stock in the bookseller to The Riggio Foundation in 2017. (A year-end gift of 1.45 million shares came weeks after Riggio purchased a million shares in the company personally.) The foundation holds close to 6 million shares of Barnes & Noble stock now (8.1 percent of shares outstanding), out a total stake for the Riggios of just over 14 million shares, or 19.2 percent of the common stock. The filing also reiterates the situation regarding […]
YA: Abrams Cancels Graphic Novel; Lerner Acquires Zest Books
Abrams has cancelled publication of controversial graphic novel A SUICIDE BOMBER SITS IN THE LIBRARY by writer Jack Gantos and illustrator Dave McKean, which was to be released in May 2019. The decision was made “together with the book’s creators,” after the title received criticism online. Abrams said in a statement, “While the intention of the book was to help broaden a discussion about the power of literature to change lives for the better, we recognize the harm and offense felt by many at a time when stereotypes breed division, rather than discourse.” The cancellation follows posts on Twitter by Zainab […]
Vivendi Formalizes Deal to Buy Editis In France
Three months after announcing “exclusive negotiations with Grupo Planeta,” last week in reporting third quarter earnings Vivendi said it had signed a share purchase agreement for French publishing group Editis. The deal requires approval from the French Competition Authority, though Vivendi says preliminary “favorable opinions” were issued on November 8, and September 13. They hope the deal will close “in late 2018 or early 2019.” Beyond that, there are no new details about the terms. They reiterate their previous statement from the summer that Editis’s enterprise value is €900 million.
Corporate: Trustbridge Buys Peachtree; Pearson Sells Property
Trustbridge Global Media, an affiliate of Shanghai-based private equity and venture capital firm Trustbridge Partners, bought children’s publisher Peachtree Publishers in a deal that closed November 7. The company will now be called Peachtree Publishing Company. Based in Atlanta, the publisher has operated since 1977, and maintains a backlist of adult titles in addition to children’s books. Trustbridge acquired Holiday House in 2016, and former Peachtree owner Anna Quinlin, who stays on as president and publisher, said this is the “best model” for how Peachtree operations will look. She stated that Trustbridge is “keen to expand children’s content into other areas” but for […]