VCs buy Alibris

VCs running amok, shades of 1999!

See the BISG panel on the long tail of books. Long tails typically amount to about 25% of online sales. It looks to me like this is basically a bet on making an existing market more efficient: Alibris has proven to be a good operating company.

Oak Hill Capital Partners announced today that it has acquired Alibris, a leading online exchange for used, hard-to-find and specialty books, music and videos. Terms were not disclosed.

According to Bill Pade, a Partner with Oak Hill Capital Partners, “We have conducted extensive research on the used/hard to find/rare book market and related ‘long tail’ businesses. We are impressed with the position that Alibris has built in this market and with the quality of its management, technology, and business partnerships. We are excited about helping this company grow and prosper.”

“Oak Hill Capital has built an unusually deep knowledge of secondary book markets, e-commerce, and the challenges of global distribution,” said Alibris’ CEO Martin Manley. “They know this market and are committed to helping us grow internationally, strengthen our movie and music business, and increase consumer awareness of our website.”

Mr. Manley will serve as Chairman and Chief Executive Officer, and Brian Elliott will serve as President and Chief Operating Officer. The closing of the transaction is expected to occur within several weeks.

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