Bid Made for Franklin Electronic
Saunders Acquisition Corp., an investment group led by Franklin Electronic Publishers president Barry Lipsky, has made an offer to acquire the company for $2.35 per share, putting the value of the deal at just over $19 million. Franklin, which has licensing agreements with a number of publishers, was one of the first companies to marry print with technology, developing handheld devices that contain reference materials sold through dedicated players such as the Spelling Ace. For the nine-month period ended December 31, revenue was down 17%, to $38 million, and it had a small net loss of $663,000. For much of 2009, Franklin's stock has been trading at below $1 per share.
Results Down At EDC
Revenue fell 3.6% at Educational Development Corp. in the fiscal year ended February 28, and net income decreased to $1.9 million from $2.3 million. The decline in sales stemmed mainly from EDC's home party division, which had a 4.9% decline in sales, to $21.3 million. Sales in the publishing segment, which focuses on sales to stores, slipped by less than 1%, to $8.1 million. EDC specializes in selling the Usborne line of children's books.
Plans for 'Rye' Sequel in Question
Plans by SCB Distributors to distribute a so-called sequel to Catcher in the Rye by John David California were disrupted last week when Rye author J.D. Salinger sued SCB, along with Swedish publisher Nicotext and the U.K. house Windupbird for copyright infringement. SCB had planned to distribute 60 Years Later: Coming Through the Rye, in September. Company president Aaron Silverman said he will consult with an attorney before moving forward.
HMH Forms Digital Group
Houghton Mifflin Harcourt has formed a digital strategy planning group within its trade and reference division. Cheryl Cramer Toto will head the new group as senior v-p of digital strategy and planning. David Jost, v-p of digital content development, will now report to her, as will Sanj Kharbanda, who's been promoted from director of e-marketing strategy to v-p of digital market strategy.
U.S. Office for Oneworld
Oxford, U.K., independent publisher Oneworld Publications will open its first North American office in New York in July to publish nonfiction and its first fiction list. Distribution will continue through National Book Network.
ISBN 979 Appears
The first ISBN prefix 979 has been issued in France, and titles with the number will begin appearing in the international supply chain. While most titles will still carry the 978 prefix, more 979-prefixed ISBNs from larger ISBN agencies are expected.
RAND Lowers E-Book Prices
RAND Corp. has changed the retail price on all of its e-books to $9.95 each. The director of publications and creative services, Jane Ryan, said RAND's production, distribution and freight costs are lower for e-books, and “we want to pass these savings on to the public.” RAND had previously based its e-book pricing on the retail price of print editions.
Connelly Sticks With LB
Little, Brown has signed bestselling author Michael Connelly to a new five-book deal. LB publisher Michael Pietsch did the deal with Philip Spitzer.
