Amazon snaps up Audible for $300m
updated 08:20 am EST, Thu January 31, 2008
Amazon Acquires Audible
Amazon today said it would acquire Audible in a share buyout deal worth roughly $300 million. The agreement effectively gives Amazon control of Audible's audiobook collection and is described as an effort to develop and expand the audiobook forrmat, which is largely dominated by the now-acquired company. The finished deal is expected to be approved sometime during the spring of this year.
Amazon has not announced any of its immediate plans for Audible but is likely to have a major effect on the audiobook industry. The former's Kindle e-book reader is currently focused on text and supports both Audible and MP3 audiobooks. However, it is unclear whether Amazon will port Audible's books to its own store with its own format, alter the store to support MP3s (similar to its music store), or leave the book service unchanged.
Amazon has also declined to say whether Audible will continue to support third-party companies such as Apple, who have integrated the Audible format into devices such as the iPhone and iPod as well as online stores such as iTunes. The latter depends exclusively on Audible support for the audiobook section of its online service.
Fresh-Faced Recruit
Joined: Jul 2002
Wow
That could play out interestingly for iTunes. Not to be a fan boy but I rarely used Audible before iTunes added a certain level of integration. But even if thats the case for most people. Amazon may be one of the few sites that can drive enough of their own traffic to offset any lost by perhaps cutting iTunes and the iPod out of Audible content.
Personally, I'd let both stay and just enjoy the revenue stream instead of trying to reinvent the ipod/wheel for audiobooks and possibly drive Apple to consider going directly to publishers and creating yet another near monopoly in a media industry.