Doubts Remain On Borders Financing
Last week, Borders announced that GE Capital has agreed to provide $550 million in new financing, but the deal is subject to conditions, including receiving $125 million in financing from publishers and other vendors. But publishers remain reluctant to accept Borders's proposal, citing reservations about accepting a note in exchange for missed payments from the retailer. And for the first time in public, Borders said it hasn't ruled out the possibility of bankruptcy. Borders needs an answer from publishers by the end of the month.

Amazon Reports Stellar 2010
Total sales for the year at Amazon were up 40%, to $34.2 billion, while net income rose 28%, to $1.15 billion. Chairman Jeff Bezos said Amazon sales topped more than $10 billion in a quarter for the first time, with actual sales hitting $12 billion, and "after selling millions of third-generation Kindles during the quarter, Kindle books have now overtaken paperback books as the most popular format on Amazon.com," even while sales of paperbacks rose. Despite these gains, fourth-quarter results missed expectations, Weak-er than expected earnings were blamed on continued investment infrastructure and technology, among other areas. Worldwide media sales (books, e-books, other content) rose 17%, to $14.9 billion in the year, while electronics sales (including Kindles) jumped 66%, to $18.9 billion. Amazon predicts its first-quarter sales will increase between 28% and 39%.

Strauss-Gabel To Head Dutton Children's
Julie Strauss-Gabel has been named v-p and publisher of Dutton Children's Books, effective immediately. She was previously associate publisher. Penguin said Dutton will become a middle-grade and YA imprint and will publish 10–15 titles a year. Dial Books for Young Readers will pick up some Dutton authors and expand from 50 to 75 titles a year.

Correction
In last week's Deals column Ellen Geiger, the agent who sold PJ Tracy's latest Monkeewrench novel to Putnam, was not mentioned in the deal listing. Geiger works at the Francis Goldin Literary Agency.