RSSAmazon scoops up Audible in $300 million deal
By Ed Oswald | Published January 31, 2008, 1:18 PM
The deal is likely to mean that audiobooks will become the latest addition to its fast-growing music download store.
It's not clear what will happen to Audible's deal with iTunes, if anything -- the company is the chief supplier of audio books to Apple's music service. However, Audible seems a good fit for Amazon considering the retailers core business is book sales.
Amazon is flush with cash at the moment, posting over $1 billion in free cash flow for 2007. That metric is typically a good barometer of the overall health of a corporation, as it indicates how much money can be spent while mantaining currently available resources.
The Kindle, Amazon's electronic book reader, will at least initially not benefit from the company's acquisition of Audible. There is no way for the device in its current iteration to play back audiobooks.
However, its not all that far-fetched to believe that with a library of 80,000 audiobooks in tow, Amazon will likely look to be adding audiobook support in the next Kindle version.
The terms of the agreement call for the purchase of all outstanding shares of Audible at a price of $11.50 per share, which is roughly equal to the Thursday afternoon trading price. In addition, Amazon will assume all of Audible's outstanding stock-based awards.
Audible was founded in 1997 and has operations in the US, UK, Germany and France.
Actually Audiobooks were a listed feature on the Kindle website from the day it launched. It's part of what I liked about it and got one for my wife. They even directly reference Audible.com as well.
http://www.amazon.com/Am...om-kindle/dp/B000FI73MA
Audiobooks
With Kindle, you are able to download and enjoy thousands of audiobooks from Audible.com. Due to their file size, audiobooks are downloaded to your PC over your existing Internet connection and then transferred to Kindle using the included USB 2.0 cable. Listen via Kindle's speaker or plug in your headphones for private listening.
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|I'm hoping that it will steer Amazon into turning more of their books into audio format.
Imagine if their entire library was available in both ebook and audible format?
That would be awesome! Maybe charge you a 1/3 price above the cost of a single item to get it in hard copy, kindle and audio format. That would be the cats meow.
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|GOOD MOVE, Amazon.
Audible could certainly use Amazon.com account integration and the framework available by Amazon. That's awesome =) I'm sure this will yield positive things for existing users!
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