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Originally Posted by Fbone
Do you have the financial records to prove this statement?
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It's part of ongoing legal action.
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Founded in 2006 by Bob LiVolsi, BooksOnBoard's business model was based on "aggressively pricing a wide selection of e-books" as well as a rewards program designed to develop customer loyalty. "Given BooksOnBoard's favorable growth pattern and increasing popularity with consumers, it received a valuation of $6 million based on funding it raised in June 2009," the suit claims.
The Diesel e-bookstore (now Lovoho), was founded in 2005 by Scott Redford. It claims to have offered over three million titles and "the cornerstone" of its business model was also discounted bundling, including "proprietary software that would allow its e-bookstore to 'shrink wrap' up to six digital e-books and sell them as a bundle to the consumer." Diesel also offered a rewards program. Diesel had enjoyed steady growth "every single year," the suit claims, with "modest profits" and a "large expansion" planned for 2011.
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BooksOnBoard lost "80% of its active customers" as "a direct result of the conspiracy," its suit claims. After the agency switch, the company's "years of steady growth abruptly ceased" and its revenue and profit plunged. "Two years after receiving a valuation of $6 million, BooksOnBoard received an offer for $600,000, a 90% percent drop in value." It ceased operations on April 6, 2013.
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http://www.publishersweekly.com/pw/b...st-claims.html