Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Jan Crawley who wrote (48011)	3/29/1999 10:28:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Audio Book buys Doubleday Direct's audiobook unit BOCA RATON, Fla., March 29 (Reuters) - Audio Book Club Inc. <KLB.A> said Monday it has agreed to acquire Audiobooks Direct from Doubleday Direct Inc., a subsidiary of Bertelsmann AG, making it one of the top distributors of audiobooks through the Internet and direct mail. Terms were not disclosed. The companies also agreed to conduct a strategic Internet marketing campaign that would include a co-branded Web site to promote both companies' operations and products. Each company would also cross-promote the other's services through links and banners on Audio Book Club's company site (www.audiobooks.com) and Doubleday Direct's Web site (www.booksonline.com). Norton Herrick, chairman and chief executive of Audio Book Club, said the acquisition of Audiobooks Direct raised the member and customer database to about 2 million. "As a result, we expect to achieve a significant increase in revenues, while adding virtually no additional overhead," Herrick said. He said spreading Audio Book Club's fixed costs over a larger membership base, coupled with the companies' ability to negotiate larger volume discounts from suppliers, would positively impact operating results. On March 26, Audio Book Club reported an increased net loss for the fourth quarter of 1998, with a net loss of $2,991,918, or $0.48 per share, over a loss of $2,430,745, or $0.44 per share, for the same quarter of last year. In early morning trade, shares of Audio Book Club were at $11.25, off $1.00 from Friday's close. In January, Audio Book Club bought Columbia House's audiobook division in a cash and stock transaction. Herrick said Audio Book Club's membership had increased from 300,000 to about 2 million in the past year, primarily due strategic acquisitions, aggressive Internet sales and marketing, and alliances with America Online <AOL.N>, Broadcast.com <BCST.O>, Lycos <LCOS.O> and Microsoft <MSFT.O>. Doubleday Direct is one of the largest U.S. direct marketing consumer book club groups, with more than 30 individual book clubs. Audio Book Club Inc. publishes and markets audiobooks through membership clubs that sell on the Internet at www.audiobooks.com and www.booksaloud.com, as well as by mail order.