Amazon Buying Audible In Deal Worth £150 Million

Amazon (NSDQ: AMZN) is pushing further into downloadable media: the company is acquiring spoken-word digital audio firm Audible for $300 million (£150 million) or $11.50 (£5.78) per share, a premium of more than 22 percent from yesterday’s closing price. The acquisition, which comes a day after Amazon reported quarterly numbers that disappointed Wall St., is subject to the typical hurdles, but is expected to close in Q2. Audible (NSDQ: ADBL), founded in 1997 by Donald Katz, and its subsidiary Audible.co.UK offer almost 200,000 hours of audio content from more than 520 content partners sold either a la carte or, more typically, through a monthly or annual subscription membership plan. Release.

Staci adds: Nearly one-third of Audible’s revenue comes through Apple; it is the top spoken-word provider for the iTunes Store with a contract to be the exclusive audiobook provider through Sept. 30, 2010. In Q307, iTunes accounted for 29 percent of Audible’s $27.6 million revenue and Audible execs expected a “great” Q4. It now will be owned by the company quickly becoming one of the iTunes’s major competitors as Amazon expands its DRM-free MP3 offerings.

Audible’s revenue overall has been increasing but the company has also had a string of net losses and has long been a good candidate for a strategic acquisition with Amazon as a possible buyer. Just last month, long-time investor Apax Partners and its affiliated funds started to divest its 23-plus percent holding. More to come.

Disclaimer: Our investor Alan Patricof served as one of Audible

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