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Rakuten's announcement on Thursday about the
OverDrive deal comes a week after it led a $530 million funding
round for U.S ride-sharing service Lyft, signaling Rakuten's
shift in focus towards more-rental based businesses.
The acquisition of OverDrive, which currently offers eBook
rental services to U.S. libraries and schools, is expected to be
completed in April. It will push Rakuten's eBook business EBITDA
(earnings before interest, tax, depreciation and amortization)
for 2015 closer to profit, the company said in a statement.
"OverDrive can be described as a 'sharing economy' business as
it shares books," Takahito Aiki, head of Rakuten's global eBook
business, told reporters.
Aiki said that Kobo Inc, a Canadian eBook company Rakuten bought
in 2011 for $315 million, is "phase 1" of its eBook business as
it allows consumers to buy eBooks. As part of "phase 2,"
OverDrive will allow libraries and schools to rent eBooks, he
said.
Another reason for the purchase is the firm's aggressive drive
into the U.S. market, Aiki said.
Rakuten has been on a buying spree in recent years to reduce
reliance on its home market. In October it bought U.S. discount
store Ebates.com for about $1 billion.
(Editing by Sunil Nair and Muralikumar Anantharaman)
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