OCLC Offers to Purchase
Bankrupt NetLibrary
OCLC announced November 15 that it had made an offer to purchase the assets of NetLibrary and assume many of the struggling e-book distributor’s liabilities. The three-year-old firm, based in Boulder, Colorado, announced in October that because of “several factors, including overall economic conditions,” it was putting itself up for sale after failing to attract additional investment financing to stay afloat.
NetLibrary also said November 15 that it has filed for Chapter 11 bankruptcy. Its purchase by OCLC, as well as a loan from OCLC to fund NetLibrary’s ongoing operations through the transition period, are subject to approval by the U.S. Bankruptcy Court for the District of Colorado.
“Electronic books and other forms of electronic content are quickly becoming strategic drivers in the sharing and advancement of knowledge in the digital age,” said OCLC President and CEO Jay Jordan. “This potential alliance with NetLibrary would advance our strategic directive to deliver technologies and services that support, extend, and enhance the OCLC membership cooperative. E-books complement our growing e-journal collection and provide exciting new synergies for our cataloging, resource sharing, reference, and digital preservation services.”
Posted November 19, 2001.
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