OverDrive sold to private equity firm KKR

[DuckieTigger]

Originally Posted by stumped

I am interested in the future outlook for Overdrive, for Kobo...

The fate of Overdrive is directly linked to the publishers willingness to continue providing ebooks to libraries. Or, you know, legalities. As this (opinion piece?) shows:

https://copyrightandtechnology.com/2...territory/amp/

I am not at all interested in reading here about the good/evil of PE in general-

That is just it. Throw a coin if you don't want to speculate whether it is more likely to go yay or nay in this particular case. I believe it is relevant to discuss previous performances and outcomes of whole companies changing ownership.

I agree with what was mentioned previously. A company that is salvageable is more likely to not go under when a big risk company with lots of money invests. Doesn't matter really if it is a VC or PE firm.

[issybird]

Moderator Notice
Political discussions including those debating climate change belong in P&R. Future posts in this thread along those lines will be deleted with the exception that citing climate change as a fact is permissible.

[rcentros]

Originally Posted by issybird

Political discussions including those debating climate change belong in P&R. Future posts in this thread along those lines will be deleted with the exception that citing climate change as a fact is permissible.

I'm trying to figure out exactly how stating "climate change is a fact" can be on topic for this thread?

[binaryhermit]

I think the thread migrated to "private equity is bad" and from there it's a small step to full-on politics.

[DuckieTigger]

Originally Posted by rcentros

I'm trying to figure out exactly how stating "climate change is a fact" can be on topic for this thread?

Not being on topic is not against forum rules. Thus you are allowed to talk about it, unless it goes into the P&R area. Climate changes, that is an indisputable fact. If you want to discuss why the climate changes, you will have to go to the P&R forum for obvious reasons.

[haertig]

I hope that Overdrive's alleged demise does not mean my Kindle will end up sharing a grave with my Palm Pilot and HDDVD player (a couple of VCR's, 8-track decks and CB radios are thrown in there too).

[binaryhermit]

Even if Overdrive went out of business, how would that put your kindle in the grave, presumably Amazon would still sell ebooks, Kindle Unlimited would still be a thing, and so would sideloading.

[CWatkinsNash]

Originally Posted by binaryhermit

Even if Overdrive went out of business, how would that put your kindle in the grave, presumably Amazon would still sell ebooks, Kindle Unlimited would still be a thing, and so would sideloading.

I would suspect that Amazon would end up working out a deal with one of the other library lending systems that would move in to fill the void. I imagine that the added book sales and device sales that they get from their current OD fulfillment integration would make it worthwhile for them to do so.

[binaryhermit]

And even if they didn't, Kindles would still be reasonably useful.

Slightly less so, though.

[DuckieTigger]

Originally Posted by CWatkinsNash

I would suspect that Amazon would end up working out a deal with one of the other library lending systems that would move in to fill the void. I imagine that the added book sales and device sales that they get from their current OD fulfillment integration would make it worthwhile for them to do so.

With the amount of money involved it is unlikely for KKR to kill off Overdrive on purpose. Unless, of course, library lending to public libraries is not what they were after. Quite possible they overpaid for that in order to snatch up the education part of Overdrive (namely lending ebooks and audiobooks to schools and colleges). The platform for schools (Sora) is already developed, just needs to catch on and be deployed nationwide in the US. Sounds like a huge potential for growth.

[fjtorres]

Originally Posted by DuckieTigger

With the amount of money involved it is unlikely for KKR to kill off Overdrive on purpose. Unless, of course, library lending to public libraries is not what they were after. Quite possible they overpaid for that in order to snatch up the education part of Overdrive (namely lending ebooks and audiobooks to schools and colleges). The platform for schools (Sora) is already developed, just needs to catch on and be deployed nationwide in the US. Sounds like a huge potential for growth.

Ah, back on track.
Yeah, OD didn't sell at a discount but at a premium. That means either it was a competition or KKR bid high enough to avoid an auction.

Either way, they must be seeing a clear path to revenue growth.
The trick is to figure out what it is.
Trade book lending in the US is under attack by the BPHs so it is at some risk of decline there while education isn't. So that is definite growth path. So is increasing Overdrive's library business outside the US.

Personally, I think there is room in the US market for a serious ebook vendor that will actively promote sales themselves, not half-heartedly listing them as a checklist feature for hardware or rely on somebody else to do the heavy lifting. A credible long term challenger for Amazon.

Alternately, they might be looking to take ebook lending directly to consumers using the library per-read pricing on a per-book basis, like with video. A market with BPH sales at $13 could support rentals at $5. Sort of a Vudu for ebooks instead of a Netflix. And, come to think of it, Walmart is trying to sell Vudu...

I doubt they bought Overdrive just to keep on doing the same old same old, much less kill it.

[pwalker8]

Originally Posted by DuckieTigger

Not being on topic is not against forum rules. Thus you are allowed to talk about it, unless it goes into the P&R area. Climate changes, that is an indisputable fact. If you want to discuss why the climate changes, you will have to go to the P&R forum for obvious reasons.

I thought the rule was as long as the original poster doesn't mind, you can go off topic, but if the original poster objects, then you are suppose to stay on subject. Of course, what is on subject can be a matter of debate.

[DuckieTigger]

Originally Posted by pwalker8

I thought the rule was as long as the original poster doesn't mind, you can go off topic, but if the original poster objects, then you are suppose to stay on subject. Of course, what is on subject can be a matter of debate.

Yes.

I should not have used a double negative. What you said agrees with what I said. Going off topic does not automatically break the rules.

[rcentros]

Originally Posted by DuckieTigger

Not being on topic is not against forum rules. Thus you are allowed to talk about it, unless it goes into the P&R area. Climate changes, that is an indisputable fact. If you want to discuss why the climate changes, you will have to go to the P&R forum for obvious reasons.

Yep, the climate has always been changing throughout the ages. Still not sure what that has to do with KKR buying out Overdrive.

[rcentros]

Originally Posted by binaryhermit

Even if Overdrive went out of business, how would that put your kindle in the grave, presumably Amazon would still sell ebooks, Kindle Unlimited would still be a thing, and so would sideloading.

Maybe binaryhermit only reads books he/she borrows from the library. I'm not that far from there myself.