Macmillan still talking with Amazon, deal may come

* Macmillan says Amazon working in “good faith”

* Arrival of Apple gives publishers more clout–analyst

NEW YORK, Feb 4 (BestGrowthStock) – The chief executive of book
publisher Macmillan said on Thursday his company is still in
talks with online retailer Inc (AMZN.O: ), despite the
apparent settlement last weekend of a dispute over the price of
electronic books.

Over the weekend, Amazon caved in to pressure from
Macmillan, which wanted to charge $12.99 to $14.99 for most of
its books sold at the bookstore of Amazon’s Kindle electronic
reader. Amazon currently charges $9.99 for the e-book version
of most new releases and bestsellers. [ID:nLDE611028]

Macmillan Chief Executive John Sargent’s post gave no hint
of what the terms of a new deal with Amazon could be.

But he said: “Macmillan and Amazon as corporations had our
differences that needed to be resolved.”

In the post on Macmillan’s website, Sargent said both
companies had been in discussions since the weekend and praised
Amazon for working “very, very hard and always in good faith”
with Macmillan.

“I cannot tell you when we will resume business as usual
with Amazon,” Sargent wrote. “You can tell by the tone of this
letter though that I feel the time is getting near to hand.”

An Amazon spokesman did not immediately return a request
for comment.

Amazon temporarily removed all titles published by
Macmillan, whose imprints include Farrar, Straus and Giroux,
and Henry Holt and Co, from its website last weekend.

The online retailer has come under fire from a number
publishers for the low prices it charges for e-books to spur
demand for the Kindle, hoping to fend off new rivals such as
Apple Inc (Read more about Apple stock future.) (AAPL.O: ) that are set to join the e-books fray with
their own devices.

Barclay Capital analyst Douglas Anmuth wrote in a note on
Thursday he expects market share for the Kindle to decline to
45 percent in 2011 from 64 percent now, given more competition
from the Apple iPad and other readers.

“The emergence of a (potentially) strong distribution
alternative in the form of Apple’s iPad has given publishers
the much-needed leverage to demand a change in the existing
book model,” Anmuth wrote.

News Corp (NWSA.O: ) Chief Rupert Murdoch, who oversees a
media empire that includes HarperCollins books, criticized
Amazon’s model on Tuesday and said Apple’s deal with
HarperCollins allowed for a variety of slightly higher prices.

Penny Stocks

(Reporting by Phil Wahba in New York and Alexandria Sage in
San Francisco; editing by Andre Grenon)

Macmillan still talking with Amazon, deal may come