Google Switches Focus Away from This Failing Business
The American Booksellers Association announced to its members Thursday by letter that Google (NASDAQ:GOOG) was ending its reseller program. The program allowed independent bookstores to operate an e-book storefront, using Google as its wholesaler.
A post on the Inside Google Books blog confirmed the news, saying “it’s clear that the reseller program has not met the needs of many readers or booksellers.” The news will be unwelcome to bookstores relying on Google, but the program will continue for nine months, giving ample time for sellers to adjust.
The Internet giant’s departure also leaves the opportunity for another e-book wholesaler to step in, and while the bookstores don’t want Barnes & Noble (NYSE:BKS) or Amazon (NASDAQ:AMZN), the industry is largely controlled by these companies, so not many other options are available. Google will now focus on its own storefront and channel things through its Play store.
Here’s how shares of Google closed the week:
Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $632.32, down $2.83, or 0.45%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 2,319,712 shares versus a 3-month average volume of 2,647,450 shares. The company’s trailing P/E is 21.25, while trailing earnings are $29.76 per share.
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