Kobo sold to Rakuten

09.11.11 | Katie Allen and Philip Jones - The Bookseller

Japanese e-commerce firm Rakuten has acquired the fast-growing e-reading service Kobo for $315m.
The move follows Rakuten’s acquisition of internet retailer Play.com earlier this year for £25m in cash, as part of the company’s European expansion plan. In October, Kobo partnered with the UK’s W H Smith to launch an e-reader, and teamed up with French retail chain Fnac. Rakuten said it planned to use Kobo to push into the expanding e-reading market.
Indigo Books & Music, the founder and majority shareholder in Kobo, said Rakuten had agreed to acquire all of the outstanding shares of Kobo Inc for $315m. Indigo expects to receive approximately $140m-$150m from the sale.
Kobo will continue to be headed by c.e.o. Michael Serbinis, and will remain as a stand-alone operation based in Toronto. Serbinis said: "Kobo will continue its aggressive growth trajectory with Rakuten's support . . . We look forward to continuing to innovate, provide the best e-reading experience for customers, and expand internationally to solidify Kobo's leadership position in the global e-reading market."
Heather Reisman, c.e.o. of Indigo and chair of Kobo, said: "We are truly proud of the success that Kobo and Indigo have achieved. From start up, only 24 months ago, to becoming a strong global player with a unique reading experience and one of the largest multi-language eReading catalogues in the world, Kobo is now among the world leaders in the emerging eReading industry. Rakuten will allow Kobo to meet the demands of competing with the very best players in the world."

Full story at The Bookseller

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