DoJ’s Apple Proposals
On August 2, The U.S. Department of Justice made public its proposal for injunctive relief against Apple for its role in the conspiracy to fix e-book prices. For Apple, the nightmare scenario in losing its e-book price-fixing case was always the potential for government oversight of all its digital content businesses. And while the proposed injunction does contain language that could extend oversight beyond e-books, it is unclear if the proposed order represents a worst-case scenario for Apple.
Michaels Leaving HBG for Macmillan
Ken Michaels will step down as president and COO of Hachette Book Group at the end of August to move into the newly created role of global chief operating officer for Macmillan Science and Education. Michaels will be based in New York and London and report to Annette Thomas, CEO of Macmillan Science and Education.
Second-Quarter Earnings Jump At S&S
Second-quarter sales at Simon & Schuster held even at $189 million in the period ended June 30, 2013, while operating income jumped to $20 million from $7 million in the second quarter of 2012. Last year’s result was hurt by legal fees tied to the Department of Justice e-book investigation, and this year’s numbers benefitted from higher sales of digital books, which are more profitable than print. Parent company CBS said e-book sales rose 39% in the quarter at S&S and accounted for 29% of total revenue, compared to 21% in the second quarter of 2012.
Dundurn Buys Thomas Allen Publishers
Toronto-based Dundurn Press is acquiring Thomas Allen Publishers, a subsidiary of Thomas Allen & Son, which is refocusing on its core distribution business. Kirk Howard, president of Dundurn, told PW that the acquisition was exciting for his company. “It’s an impressive list that Thomas Allen has put together,” he said, noting that it includes 126 titles.
Levin Named Acting Publisher of Hyperion Books
Hachette Book Group CEO Michael Pietsch announced that the company has hired Martha Levin as acting publisher of Hyperion Books. Earlier this summer, HBG acquired over 1,000 Hyperion titles. Levin, who was most recently publisher of Free Press, had previously served as Hyperion’s publisher. HBG is also bringing over Hyperion veteran Betsy Hulsebosch as the press’s new associate director of marketing and publicity.
Sales, Earnings Down at Harlequin
Revenue fell 7% at Harlequin in the second quarter that ended June 30, to C$99.5 million, and operating earnings dropped to C$10.5 million, from C$18.1 million in the same period last year. CEO Donna Hayes attributed the declines to currency fluctuations, continued weakness in its North American book club business, and a deeper-than-expected decline in overseas sales. She noted that print retail sales in North America were stable in the quarter and that e-book sales were up.
Edwards Brothers Malloy Consolidates
Citing the need to reduce excess offset manufacturing capacity and to free up resources to invest in digital manufacturing, Edwards Brothers Malloy is consolidating its two Ann Arbor, Mich., manufacturing plants into one facility. The State Street operation will be moved to the company’s other offset facility nearby, and the property will be put on the market; the entire move is expected to take six to 12 months. The company noted that some positions have already been cut and more reductions could come next year.
Jaramillo to Take On New Role at Workman
Raquel Jaramillo is leaving her position as director of children’s publishing at Workman to become an editor-at-large at the house. She will step down on Oct. 25 and move into her new role on Feb. 3, 2014. The move will allow Jaramillo, who, as R.J. Palacio, is the bestselling author of Wonder, to devote more time to her writing.
New Feminist Press Publisher
Jennifer Baumgardner has been named the new publisher and executive director of the Feminist Press. Baumgardner follows Gloria Jacobs, who has retired.