Friedman Raises $3 Million
In documents filed with the SEC, former HarperCollins CEO Jane Friedman disclosed that she has raised $3 million to fund her new startup, OpenRoad Integrated Media LLC. Funding came from Kohlberg Ventures. Listed along with Friedman as executives of the company are Jeff Sharp and Chris Lederer. Sharp, an independent movie producer, had formed a partnership with HarperCollins to develop HC titles into films through a unit called Sharp Independent at HarperCollins. HarperCollins confirmed that although the publisher’s deal with Sharp expired, the films under development through that wing are still moving forward. Friedman was unavailable to discuss what OpenRoad will actually be doing.
Amazon Bid To Dismiss BookLocker Suit Denied
A court has denied a motion by Amazon to dismiss an antitrust lawsuit filed against the e-tailer by print-on-demand publisher and bookseller BookLocker. The case stems from Amazon’s decision last year to require POD publishers to use its BookSurge subsidiary to manufacture POD titles if they want to sell their titles on Amazon directly. In a post on his Web site, Richard Hoy of BookLocker wrote, “Among other steps, we anticipate beginning discovery shortly.”
Bloomsbury USA Up
Sales at Bloomsbury USA rose nearly 36% in the first half of 2009, to £8.7 million ($14 million at current exchange rates), and the company managed to eke out an operating profit of £30,000, compared to a loss of £400,000 in the first half of 2008, parent company Bloomsbury reported. Worldwide sales for the U.K.-based Bloomsbury fell to £35.3 million from £42.1 million, and profits declined from £3.6 million to £1.2 million. Sales in the trade and children’s segments fell, while revenue in the specialist group, helped by acquisitions, rose.
Mixed Results At Quarto
Quarto reported that total revenue for the first six months of 2009 fell 5%, to £41.8 million ($67.6 million at current exchange rates), although the net loss for the period was cut to £891,000 from £2.4 million. The U.S. accounts for 60% of Quarto’s publishing segment revenue and volume was down in the period. Revenue in the publishing segment fell 2%, to £29.9 million, as gains in the U.K. partially offset weakness in America. In its co-edition segment, sales fell 12%, to £11.8 million, with comparisons hurt by a strong release schedule in the first half of 2008. Sales for QED, its educational publishing unit, rose 81%.
Joseph Rises As Globe Downsizes
Globe Pequot Press COO Jim Joseph, who assumed Scott Watrous’s duties after his departure last month as president and publisher, has been officially named president. The 11-year company veteran will concentrate on GPP’s core strengths, which include titles for the outdoor recreation and travel segments. As part of the refocusing, 14 people were laid off across various departments at the beginning of August, and the company is scaling back its list. It will publish 375 titles in 2010, down from 450 in 2009.
Haights Cross Tries Again
Haights Cross has ended its attempt to reorganize its finances through a private offering in which qualified investors would have exchanged discount notes for stock in the company. Haights terminated that offering because it failed to received the necessary commitment from notes holders. The company is now moving ahead with plans to restructure its debt on its 11¾ senior notes and 12½ senior discount notes and credit agreement. The debt discussions will not affect the day-to-day operating performance of Haights’s two main subsidiaries, Recorded Books and Triumph Learning.
Scholastic Closer to Paper Goals
Just under 20% of all paper purchased by Scholastic in 2008 was certified by FSC (Forest Stewardship Council), up from 4% in 2007. Scholastic’s goal is to have FSC-certified paper account for 30% of purchases by 2012. The company also increased its purchase of paper created from recovered fiber from 13% in 2007 to 15.1% in 2008; by 2012 it aims to have 25% of its paper come from recycled fiber.
BBC Audiobooks For Sale
The BBC is looking to sell a majority stake in BBC Audiobooks, sources familiar with the company confirm. Based in the U.K., BBC Audiobooks includes the American division BBC Audiobooks America. The organization hopes to sell BBC Audio to a company already in the audio business; a sale is not expected to be completed until early in 2010. In addition to audio offerings, BBC Audio has a large-print division.
