BEA and ALA Merger Off
The proposed combination of BookExpo America with the American Library Association's annual meeting will not move forward. Following months of talks between the ALA board and Reed Exhibitions, parent company of BEA, the two parties issued a statement Friday saying that talks have been concluded, and the two events will remain separate.
Texas Hits Amazon with $269 Million Tax Bill
In its quarterly filing with the Securities and Exchange Commission, Amazon reported that in September Texas issued an assessment saying that Amazon owed the state $269 million for uncollected sales tax for the December 2005 to December 2009 period. In the filing, it wasn't clear why Texas determined that Amazon should have collected sales tax, and Amazon stated: "We believe that the State of Texas did not provide a sufficient basis for its assessment and that the assessment is without merit. We intend to vigorously defend ourselves in this matter."
A spokesperson for the Texas comptroller's office declined to discuss why the state decided to levy the tax now, but said it expects all parties that have nexus, or presence, to collect sales tax. "Any taxpayer that has nexus and has not been collecting sales tax could be subject to a tax liability for past periods as well," the spokesperson added.
North Carolina Blocked from Collecting Data
A federal judge ruled against North Carolina's request for Amazon customer data, stating that the request is unconstitutional, violating First Amendment rights. Amazon dropped its North Carolina affiliates after the state claimed that the affiliate program constituted enough of a presence in the state for Amazon to be required to charge sales tax to North Carolina residents.
Obry to Head MBA
Carrie Obry, an acquisitions editor at Llewellyn Worldwide for the past five years, has been named the new executive director of the Midwest Booksellers Association. Obry, 35, will replace Susan Walker and will assume her new responsibilities on December 27. Walker, who's been director of MBA for 23 years, is resigning as of January to move back to her native North Carolina to care for her aging parents.
Scholastic to Repurchase 5.2M Shares
Scholastic announced that, based on preliminary results, it expects to purchase 5,231,349 common shares, at a price of $30 per share, for a total cost of $156.9 million under a Dutch auction announced in late September. The total value of the repurchase program is slightly higher than Scholastic's original target, which was to buy up to $150 million worth of its shares.
Third Quarter Up at MHE
Total revenue at McGraw-Hill Education rose 5.5% in the third quarter, to $1.1 billion, while operating profits increased nearly 20%, to $357.5 million. Revenue for the school education group rose 6.7%, to $534.7 million in the quarter, while sales in the higher education, professional, and international group increased 4.3%, to $520.0 million. In the professional publishing division, online sales of books rose, and e-book sales grew by double digits, offsetting sluggish results in the retail book market.
For the first nine months of the year, sales at MHE rose 3.7%, to $1.94 billion, while operating profits jumped 43%, to $347.3 million.