|
It seems to me that in Canada, Chapters-Indigo had to "go big or go home" as demand for eBooks grew. Spinning off Shortbooks into Kobo and taking in partners (while retaining 58% for themselves), was brilliant, given the relatively small market in Canada alone. The big bucks spent in the quarter reflects the capitalization of the new venture. They could have spent less, and ended up with a smaller share of Kobo. This quarter's numbers would have looked better, perhaps, but Kobo as a separate entity would both not be under their control and not have enough to launch themselves successfully.
|