AMZN: Amazon Sticks It to Hachette With Offer to Authors

Amazon offers authors 100% profits from e-book sales

   

AMZN: Amazon Sticks It to Hachette With Offer to Authors

Amazon (AMZN) has offered up an interesting deal to book publisher Hachette and its authors.

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In an effort to get writers out of the battlefield between the two companies, Amazon has proposed that all Hachette authors should receive full payment for e-book sales during the debate. This deal would mean that a writer would see the full $10 from an e-book that sold for that much. The online retailer states in its offer that both it and Hachette wouldn’t take funds until an agreement is reached, The Wire notes.

Amazon claims that its offer is genuine and that it just wants to help the authors. However, Hachette isn’t buying it. The publishers refused the offer and said it would rather invest in its writers and get them a contract with the company. Amazon called baloney on Hachette’s response and claims it just wants the authors as leverage, reports The Wire.

In May, Hachette accused Amazon of delaying shipping orders and listing products out of stock to give it leverage in the negotiations between the two companies. The conflict between the two companies has resulted in Walmart (WMT) working to fill orders for Hachette books. This includes the retailer offering a 40% discouhnt on all books from the publisher in June.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/07/amzn-amazon-hachette/.

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