Storytel AB (publ), Storytel Iceland and Iceland’s leading book publishing house Forlagið, have today agreed to enter into a multiannual distribution agreement. This means that the merger application for the companies, which was announced this summer, is withdrawn.
On 1 July 2020, Storytel announced its intention to acquire a 70 percent majority interest in Iceland’s leading book publishing house Forlagið. The majority seller, Mál og menning Literary Society, would remain a 30 percent minority owner in Forlagið, which would operate independently from Storytel Iceland’s streaming operations on the local market.The closing of the acquisition is subject to approval from the Icelandic Competition Authority (ICA). Forlagið’s catalogue includes some of the most appreciated and important parts of Icelandic literature. Storytel Iceland and Forlagið saw an opportunity to make this unique content offering available digitally to the modern listeners and readers as audiobooks and e-books, and this has also been the primary mutual goal for the negotiations with the ICA from the start.
However, Storytel Iceland and Forlagið have today decided instead on an alternative solution by an agreement to enter into a multi-year distribution agreement. This means that the merger application for the companies is withdrawn.
“I am extremely happy that Storytel Iceland’s customers will be able to enjoy parts of Forlagið’s first-class catalogue. Over the past few days Storytel and Forlagið have discussed the best possible solution for the Icelandic listeners, readers and authors, resulting in the agreement that was signed today. It is a robust deal that both parties are confident will benefit both the Icelandic consumers and the authors”, says Stefán Hjörleifsson, Country Manager for Storytel Iceland.
“From the beginning, our talks with Storytel Iceland have had primarily one common main goal: to make the Icelandic literary heritage, as published by Forlagið, available to Icelandic readers in audiobook and e-book format. With this long-term distribution agreement, we are making this possible. The agreement will both advance the digitalisation of the Icelandic book industry and make loved authors and literary gems accessible to the modern readers and listeners”, says Halldór Guðmundsson, Chairman of Forlagið’s majority owner, Mál og menning Literary Society.
FNCA Sweden AB is the company’s certified adviser. FNCA can be reached at email@example.com or +46 8 528 00 399.
For more information, please contact:
Stefán Hjörleifsson, Country Manager, Storytel Iceland
Tel: +354 896 1800
Dan Panas, Head of Communications, Storytel AB
Tel: +46 70 186 52 90
Storytel is one of the world’s largest subscribed audiobook and e-book streaming services and offers listening and reading of more than 500 000 titles on a global scale. Our vision is to make the world a more empathetic and creative place with great stories to be shared and enjoyed by anyone, anywhere and anytime. Storytel’s streaming business is conducted under the brands Storytel and Mofibo. Storytel’s publishing business area is carried out through the audiobook publisher StorySide and acclaimed Nordic publishing houses such as Norstedts, People’s Press and Gummerus. Storytel operates in over 20 markets around the globe and is headquartered in Stockholm, Sweden.