Amazon Speaks Louder, Announces $300 Million Audible Purchase

Amazon Speaks Louder, Announces $300 Million Audible Purchase

Amazon has now acquired Audible, a leading provider of spoken word downloads.  The $300 million deal bolsters Amazon's digital ambitions considerably, and follows a string of music and ebook-related moves.  Since its inception in 1997, Audible has compiled 80,000 programs from more than 520 content partners, according to information shared Thursday.  The acquisition, subject to various regulatory reviews and formalities, is expected to close during the second quarter.

The Audible catalog traverses audio editions of books, newspapers and magazines, as well as television and radio programs.  That is obviously complementary to the Amazon model, though the purchase opens a number of questions.  A major catalyst for Audible's growth comes from Apple, which carries an exclusive sales relationship and offers critical iPod compatibility.  Amazon represents an iTunes rival, though the mega-etailer has also adopted a cooperative, iPod-friendly stance through its Amazon MP3 launch.

The acquisition also closely follows the release of the Amazon Kindle, a WiFi-enabled ebook reader that offers access to roughly 90,000 books, blogs, magazines and newspapers.  Amazon purchased Audible for $11.50 per share, and also assumed various outstanding stock-based awards.


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