Amazon buying Audible.com for $300M
NEW YORK (AP) - January 31, 2008 Amazon expects the deal, valued at about $300 million, will help
bring to a broader audience Audible.com's more than 80,000
programs, which include audiobooks and spoken-word audio content
from news outlets such as The New York Times and The New Yorker.
The deal is expected to be completed by the second quarter of
2008.
Amazon shares fell $1.85, or 2.5 percent, to $72.36 in midday
trading Thursday.
The company said late Wednesday that its fourth-quarter profit
more than doubled and forecast strong sales growth for the coming
year, but gave operating income guidance below Wall Street
expectations.
Audible shares rose $2.07, or 22 percent, to $11.40 in midday
trading Thursday.
Under the agreement, Amazon will buy all outstanding Audible
shares for $11.50 apiece and take on the company's outstanding
stock-based awards. Amazon said the deal includes Audible's cash
and short-term investments.
Audible, a leading provider of audio literature, specializes in
the spoken experience, providing digital audio editions of books,
newspapers and magazines, original programming, and TV and radio
subscriptions.
The Newark, N.J.-based company is a top provider of spoken-word
content at Amazon and Apple Inc.'s iTunes store, and its downloads
are compatible with more than 500 devices, including Apple's
market-leading iPods.
Most of its customers download audio to their computers and then
transfer the audio to digital media players, personal digital
assistants or to smart mobile devices for listening on the go.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
