Amazon reaches $300 million deal to acquire Audible
Amazon.com reached an agreement yesterday to buy Audible.com for $11.50 a share, in a deal that Amazon values at approximately $300 million, including Audible’s cash and short-term investments.
“Under the agreement, Amazon will begin an all-cash auction to purchase all of Audible’s outstanding shares. The deal includes Audible’s cash and short-term investments. It has approximately 160 employees with a head office in Newark, New Jersey, and an office in London, England with 15 employees.
Headquartered in Newark, New Jersey, Audible offers more than 200,000 hours of sound files, including audio books by authors such as Stephen King, John Grishman, Thomas Friedman and Jane Austen, as well as audio content from newspapers such as The New York Times and The New Yorker magazine.
These contents can be downloaded from its website and played on personal computers, recorded on a CD or in MP3 format or used on mobile digital players such as Amazon’s own iPod or Kindle.
In November, the online store presented its Kindle electronic book reader, which has a wireless connection to the Internet and allows you to store up to 200 works among an offer of 90,000 titles that are for sale in the company’s Internet store.
Founded in 1997, Audible is specialized in a sector that has experienced strong growth in recent years in the difficult area of revenue from Internet downloads and in the first three quarters of 2007 it managed to invoice 78.7 million dollars.