Originally Posted by ilovejedd
Prior to the Amazon take-over, Mobipocket format ebooks were available via Overdrive. The technology is certainly there. It's just a matter of Amazon allowing it and probably licensing issues.
From the Overdrive site to consituent libraries:
"Your existing collection of downloadable eBooks will be available to Kindle customers. As you add new eBooks to your collection, those titles will also be available in Kindle format for lending to Kindle and Kindle reading apps. Your library will not need to purchase any additional units to have Kindle compatibility. This will work for your existing copies and units."
The mobipocket books as well as epubs and PDFs will all be lendable as Kindle books.