Amazon is one of the most popular bookselling website on the internet today and the company through their various strategic acquisitions has made sure that they stay on top for a foreseeable future. The company has been busy elimination its competitors by acquiring them the moment they pose a threat to its business. Back in 2008, Amazon acquired Shelfari, one of the company’s competitors at that time. The company also holds some stake in LibraryThing and now, the company has decided to acquire Goodreads, the world’s largest site for book recommendations.
The deal would be important for both the companies as amazon will benefit by having the power to influence readers while Goodreads would get the backing of one of the most popular internet websites. Amazon started deleting book reviews from their website after the company learnt that many authors paid people for writing positive reviews for their books. Goodreads might be the healthy way for Amazon to give exposure to their authors.
In a phone interview with the NYtimes, Otis Chandler, the owner of Goodreads said, “Amazon has a real history of building independent brands and running them as independent companies,” This would mean that the current management of the company who reviews the recommendations on the website would remain intact and Amazon will not influence these recommendations.
The terms and conditions of the deal are not yet disclosed but the transaction is expected to be completed by the second quarter. Goodreads has over 16 million users and many of these are likely to be Amazon customers. The website was initially started to recommend books to fellow users based on what their friends were reading however, recently the company was in talks to sell books both online and offline.
Many authors are glad with the merger especially the newbies as they once they become popular on the website, interested users can easily go and buy their books on Amazon. However, some are not that happy as Amazon would give focus only to those books which are famous among the Goodreads users.