INDEX // mb Ideas on Publishing Books in Canada (and other attempts to write good)

Leaning In

This morning brought news of Amazon’s (via A9) acquisition of yet another innovative start-up. They bought SnapTell, the service that allows users to snap a picture of a bookcover and see pricing for that item at online stores (B&N, eBay, Amazon.com) as well as information at Google and Wikipedia.

Amazon’s continued land grab of promising book-related start-ups has a feeling of inevitability in it. Who else has the cash and the vision to buy this companies?

Processing. Processing…

I can’t think of anyone who is leaning into the changes in the industry as aggressively as Amazon is.

Ingram? They are amalgating their businesses and aren’t yet ready to buy new ones.
B&N? Perhaps too conservative. Perhaps too poor. Perhaps a culture predisposed to build and not to buy.

Indigo is the only company in the world I can think of that that is well positioned to rival Amazon in acquisitions. They are out of debt. They have direct long-term interest in this space (unlike Apple or Google). They have shown a willingness to both innovate (Shortcovers) and expand (Pistachio). And they have experience merging with another company (Chapters — whether that merger is successful however is debatable).

So what’s holding them back? Vision? Leadership? A regional mentality? My bet is there are people in the organization that could lead Indigo’s acquisition of start-ups but those people and those ideas and those companies aren’t finding their way in front of the decision maker(s). Call it a chilling effect. If you are a VP and you bring forward an idea that fails, you wear it. That is the downside of the sole-proprietor model. Shame.


4 Comments

Hey Mark. A couple of quick thoughts…

I think these acquisitions are kind of different. And who else would have benefited from buying the apps apart from Amazon?

SnapTell is neat but it is probably going to be difficult to monetarize for anyone other than Amazon(and even they might struggle) so who else would want it?

And with Stanza my feeling is that they simply bought the competition. Stanza probably wasn’t quite such a direct threat to anyone else’s business model, but as the Kindle was being outflanked by the iPhone, Amazon needed to be in that market. Buying Stanza was easier than developing something themselves.

Posted by Dan on 18 June 2009 @ 11am

The thing about SnapTell is that they’re not only book-related. It is image recognition. Not only does this aid in Amazon’s search engine, but it puts Amazon in every single retailer whenever someone has a cell phone with a camera.

I’d wonder however why Google or Microsoft didn’t acquire this company considering the fact that they both want to monetize any sort of step between the consumer and the producer. If eBay weren’t in such a crappy position, I’d say they should have acquired it.

I’d agree with Dan that Stanza was acquired by Amazon to place themselves further into the race (considering the # of existing users) however I wouldn’t say that the Kindle was being outflanked by the iPhone considering the sales of newer books through the Kindle. I still have an inkling that dedicated e-Book reading devices have some ways to go but the smartphone and netbook/smartbook is definitely beating on it at the moment.

Posted by Ehren on 19 June 2009 @ 2am

@Dan — i guess I am saying two things 1) Amazon is buying up the business and no one else is (snaptell, stanza, booktour, audible, mobipocket). They are acquiring offensively and defensively. Some of these purchases will turn out to be smart moves and others won’t. 2) I also wanted to raise the question of why they are the only company active in the sector. They are the biggest and richest and these purchases will help keep them that way. Not sure. But I am thinking the companies on the sidelines won’t buy for internal-cultural reasons rather than business ones. That basically forfeits the future transnational book business to Bezos before the game event starts. Indigo is an unlikely incubator for start-up-like companies, but it would be better for everybody if selling to Amazon wasn’t an entrepreneur’s single exit.

Posted by mb on 19 June 2009 @ 3am

Quite true Mark. These days, nearly every start-up is looking to become an acquisition by some larger business organization or reach some sort of valuation like Facebook.

Odd… i don’t recall commenting at 2am… :)

Posted by Ehren on 20 June 2009 @ 6am

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