Audio Book Buys Columbia House Unit

Audio Book Club Inc. said it bought Columbia House Audiobook Club, the No. 1 audio book seller that’s jointly owned by Time Warner Inc. and Sony Corp., in a move that would double its revenue. Audio Book Club, which sells audio books via the Internet and by mail, paid an unspecified amount of cash and stock for the unit of Columbia House Co., the world’s largest direct marketer of entertainment products. As part of the purchase, Audio Book Club will promote its products through Columbia House for seven years. Acquiring Columbia House Audiobook, with sales of about $30 million last year, will increase Audio Book Club’s membership to more than 1 million from 400,000, making it the No. 1 seller of books on cassette or compact disc. The purchase closed Thursday and immediately will boost earnings, the Boca Raton, Fla.-based company said. Audio Book Club had revenue of $20 million in 1998. Audio Book Club shares rose $1.38 to close at $13 on the American Stock Exchange.