News

Gemstar Makes French Buy
Herbert R. Lottman, Jim Milliot and Edward Nawotka -- 9/25/00
Start-up company is taken seriously in a market yet to be born in France



The Paris electronic publisher Les Editions OOhOO (pronounce it "zero hour"), a start-up that is taken seriously in a market yet to be born in France, has been acquired by Gemstar, the Pasadena, Calif.- based parent company of Rocket eBook creator NuvoMedia and SoftBook Press. The French press reports that some of the biggest media groups were in line to buy OOhOO, including Vivendi's Havas, Lagardère (owner of Hachette), the Fnac appliance chain (which operates its own e-commerce sites) and even France Telecom, the national phone company.
Newest addition to
Gemstar empire.
OOhOO has more than 600 French e-book titles and licensing deals with many of France's largest trade publishers. Titles can be downloaded directly from its Web site at www.OOhOO.com. The company plans to become an online publisher in most European languages and started a Portuguese language program earlier this year. Gemstar chairman Henry Yuen said, "OOhOO brings the necessary leadership position and innovation to make us a major participant in the new era of digital publishing in Europe."
Paris daily Le Monde reports that while the amount Gemstar paid for OOhOO hasn't been revealed, the figure would be in the "tens of millions of francs," although the French company's sales scarcely amount to one million (which at a current conversion is upwards of $140,000).

New Model: $300
In related e-book news, Thomson Multimedia, which is manufacturing the successors to Gemstar's Rocket eBook and SoftBook devices, announced last week that the lower-end, monochrome model will cost $300 about $50 higher than a similarly configured Rocket eBook. A color version with greater expandability will be available for $700. Both models include modems, making the devices capable of downloading books directly without a computer. A number of industry members have expressed disappointment at the pricing, which many people believe is still too high for mass appeal. Publishers had hoped the devices would be cheaper than current e-book readers in order to stimulate demand.

But more news is coming regarding Gemstar's e-book plans. In an e-mail to reporters last week, the company said it is planning a major announcement in early October, which Gemstar chairman Yuen is expected attend along with senior executives from Thomson. Among the promised announcements will be an exclusive content deal with an as yet unnamed bestselling author.