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As a reader, I don't ever look at the imprint--I get the authors I like. If one is gone, a hundred more take their place.
As a writer, I can understand some of their concerns, but it also just opens the door wider for all the progressive publishers, small presses and independent authors. Penguin just has some books under contract- it doesn't control the future of publishing, nor of literature, nor of the library ebook system.
I'd guess Amazon doesn't mind at all. Every time a publisher retreats, Amazon moves forward a little.
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