PublishersLunch
Amazon has made yet another strategic acquisition that was just lying there within easy grasp of many others as well, bound to extend the company's strong hand in sales of English-language books around the world. They have an agreement to acquire the fast-growing UK-based The Book Depository, for undisclosed terms. The Bookseller has said that the Book Depository is headed for sales of £120 million (or roughly $190 million) this year.
Amazon vp of European Retail Greg Greeley said in the brief announcement, "Customers in more than 100 countries enjoy The Book Depository's vast selection, convenient delivery and free shipping. The Book Depository is very focused on serving its customers around the world, and we look forward to welcoming them to the Amazon family." Book Depository founder Andrew Crawford adds, "we look forward to continuing our growth and providing an ever-improving service for readers globally."
The Book Depository said via its Twitter feed it "will continue to operate independently." The deal is subject to regulatory approval and the UK's Office of Fair Trading has officially invited comment on whether it "may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom," a process which "effectively starts our merger enquiry." They will decide by the end of August whether to refer the deal to the Competition Commission for formal investigation and report by the end of August.
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Amazon vp of European Retail Greg Greeley said in the brief announcement, "Customers in more than 100 countries enjoy The Book Depository's vast selection, convenient delivery and free shipping. The Book Depository is very focused on serving its customers around the world, and we look forward to welcoming them to the Amazon family." Book Depository founder Andrew Crawford adds, "we look forward to continuing our growth and providing an ever-improving service for readers globally."
The Book Depository said via its Twitter feed it "will continue to operate independently." The deal is subject to regulatory approval and the UK's Office of Fair Trading has officially invited comment on whether it "may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom," a process which "effectively starts our merger enquiry." They will decide by the end of August whether to refer the deal to the Competition Commission for formal investigation and report by the end of August.
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In a different type of strategic acquisition, Pearson Australia has acquired the online bookselling and ebook businesses of the bankrupt REDGroup retail, which includes the online stores for Borders Australia and Angus & Robertson. (The sites are http://www.borders.com.au/ and http://www.angusrobertson.com.au/.) They intend to retain 16 staff members associated with the businesses, and will run the two sites separately for now. Pearson also has an agreement with REDGroup's ebook partner Kobo that will give "customers continued access to their eBooks purchased through the Australian REDgroup online sites." Higgins tells Bookseller and Publisher it's "a different deal" which the magazine said "reflected the fact that Kobo would need to partner with bricks and mortar retailers in future."
Pearson Australia coo Dionne Higgins says in the announcement, "REDgroup online has always enjoyed a strong market share, and an incredibly loyal customer base and we see this acquisition as an opportunity to further build this business. The team are committed to providing customers with a great online shopping experience." Pearson will run the businesses as an independent unit. Kobo tells us, "for Pearson, we have an agreement in place to maintain service and look forward to continuing our growth in Australia," reinforcing the implication that going forward they will look for other bookselling partners there. Vendor Tangent Communications has said that they "will continue to be a primary e-commerce provider" to the websites.
Pearson Australia coo Dionne Higgins says in the announcement, "REDgroup online has always enjoyed a strong market share, and an incredibly loyal customer base and we see this acquisition as an opportunity to further build this business. The team are committed to providing customers with a great online shopping experience." Pearson will run the businesses as an independent unit. Kobo tells us, "for Pearson, we have an agreement in place to maintain service and look forward to continuing our growth in Australia," reinforcing the implication that going forward they will look for other bookselling partners there. Vendor Tangent Communications has said that they "will continue to be a primary e-commerce provider" to the websites.
The Australian Booksellers Association is hoping that the Australian Competition and Consumer Commission will look into Pearson's acquisition of the Borders Australia and Angus & Robertson websites. But since they are buying the units out of bankruptcy, and no other bidders have been named, it will be hard to argue that rescuing the sites inhibits competition. Also in Australia, the remaining 16 company-owned Angus & Robertson bookstores that have not been sold will be closed by the end of July.
"The Book Depository said via its Twitter feed it "will continue to operate independently."
ReplyDeleteMay I express doubt? One of the oldest methods of getting rid of a commerical competitior is to buy out the business and then bury them. Even if run as two "names" this is simply window dressing: the businesses will no longer be competing, very much to the consumer's detriment.