More digital ambitions from Amazon: The company is buying audio book pioneer Audible for $300 million. The $11.50 per share price is a 24% premium above yesterday’s close; it gets Jeff Bezos a company that lost $192,000 on sales of $27 million in its last quarter.
The deal makes plenty of strategic sense for Amazon, which is finally pushing into digital sales with purpose. Last year it launched both a digital music store and its Kindle e-book reader with accompanying digital book store. No word yet on the music store’s results, but Amazon says the Kindle is doing very well, despite our scepticism.
A good chunk of Audible’s sales come through Apple’s iTunes, but its products are supposed to compatible with a variety of software and players. And the Kindle already comes with a rudimentary MP3 player, so easy to see the bundling possibilities here.
Side note: NY-based eMusic, which was set to sell itself to Amazon last year but lost the deal at the last minute, has moved into audio books itself.
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