Hit #188 (Audible)

Late in January, Amazon agreed to buy Audible (ADBL) for $300 million. The cash offer, of $11.5/share, makes for a gain of 9.6% over my average cost of $10.49.

The offer price is low given Audible's leadership position, and its loyal customers (I know a few of them). Why didn't they fight for a better offer ?

I had invested part of the proceeds from Engelhard's sale (see post) into Audible. In the same post I had mentioned Apple or Yahoo as likely buyers. Amazon came as a surprise.

Another post I did earlier, on investing prospects related to increased bandwidth demand, also mentioned Audible as a candidate.

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