RH Results Down
Random House reported an 8% decline in worldwide earnings for the first half of 2007, to 44 million euros ($60 million), while revenue fell 3%, to 832 million euros ($1.13 billion). Random CEO and chairman Peter Olson attributed the decline in revenue primarily to currency fluctuations, while earnings were also negatively affected by majority-interest acquisitions in BBC Books and Virgin Books. Olson said that while Random “is having a strongly profitable 2007,” he added, “we'll need many additional successful books over the next four months to reach our full-year financial goals.”
Olson Adds Clubs
Random House chairman Peter Olson has added oversight of Bertelsmann's Direct Group businesses in North America—which include all the former Bookspan book clubs—to his responsibilities. Formerly known as Direct Group North America, the company will now go by the name of Bertelsmann Direct North America. Olson stressed that Stuart Goldfarb, president and CEO of the group, will continue to run the company and that the announcement should not be interpreted as a first step toward its integration into RH.
Conservative Book Club Buys Rival
The American Compass Book Club, one of the Bookspan clubs targeted to be closed, has been acquired by the Conservative Book Club. The deal will boost the membership of the Conservative Book Club from about 40,000 to more than 100,000. The combined clubs will operate under the Conservative Book Club name and will be directed by Stuart Richens, an Eagle Publishing v-p.
AMS, B&T Compromise
Baker & Taylor has agreed to make a net payment of $1.8 million to AMS to settle charges by AMS that B&T wrongfully withheld $6.2 million when it made its final payment for the AMS assets it acquired (PW, July 30). The $1.8 million consists of a payment of $6.05 million by B&T, minus $4.25 million AMS agreed to pay B&T under the transition services agreement between the two companies. The settlement must still be approved by the bankruptcy court.
RH to Distribute DC Comics
Beginning in spring 2008, DC Comics will switch its book trade distribution to Random House Publisher Services, after more than 20 years using Warner Books/Hachette. DC will continue to use Diamond Comics Distributors for the comics shop market. The change could drive greater mainstream acceptance of graphic novels and teams one of the world's largest publishers of comics and graphic novels with the book industry's largest and most far-reaching distribution service.
AuthorHouse Buys iUniverse
AuthorHouse, the self-publisher backed by the private equity firm Bertram Capital, has acquired competitor iUniverse. AuthorHouse and iUniverse both have three offices, and there are no plans to close any locations, including iUniverse's New York site, where most of the editorial services are located. At present there are no plans to trim either company's title output; iUniverse publishes about 400 books a month and AuthorHouse does 500 to 600.
Holtzbrinck Unveils Podcast Business
Holtzbrinck has launched an online network of downloadable audio snippets dubbed Quick and Dirty Tips. The move marks the first attempt by a publisher to establish a money-making podcast business. In addition to hosting ads on the site and in the podcasts, Holtzbrinck is hoping to bring in revenue through licensing deals.
