NetLibrary Fails to Attract Investment, Looks for Buyer

By Planet eBook Editor
October 16, 2001

In a letter to its customers and partners from Rob Kaufman, President and CEO of netLibrary, the company has announced major changes as a result of its failure to attract more investment funds. According to the letter, once the failure became apparent, "netLibrary immediately began to pursue the possibility of being acquired by a number of possible candidates with interest in the library, publishing and eBook marketplace. Those discussions continue today." During August, 2000, netLibrary filed an Initial Public Offering (IPO) to raise over $82 million, but abandoned the plan four months later citing market conditions.

According to a report at The Daily Camera, all employees have been offered pay of $360 dollars per week to help the company stay alive. Continued employment is dependent on the company funding a buyer and the necessary money to maintain the company as a going concern.

Since the company began it has been held up by many as an eBook-based business model that has worked, but unfortunately for the employees, the investors thought otherwise. According to the company, at last count it had developed an archive of more than 37,000 titles, from contracts with more then 100 publishsers, and was delivering them to more than 5,500 libraries and organizations.

Previously on Planet eBook...

netLibrary Cancels IPO Plans

December 13, 2000 — netLibrary has announced the cancellation of its IPO plans citing market conditions. The company announced earlier this year its plan to raise a further $82 million.

netLibrary files for IPO

August 18, 2000 — netLibrary has filed to raise over $82M in an IPO. Assuming the IPO goes ahead, it will make netLibrary the first ebooks-based company to join the NASDAQ and see them listing using the EBKS symbol.