As I understood the press release, they are going to create a new "Kindle" format for Overdrive. This will not be the current Mobi format. (Am I understanding that right?)
I had a terrible thought. Not only is this going to create more fragmenting and require libraries to spend money on another license for every book, but probably Amazon is going to get paid for every Kindle license that is sold to a library via Overdrive? Yuck.