A c t i o n f o r L i b r a r i e s — D e c e m b e r 2 0 0 1

OCLC Makes Offer to Purchase netLibrary Assets

Subject to the approval of the bankruptcy court, OCLC Online Computer Library Center has made an offer to purchase substantially all the assets of netLibrary and assume certain netLibrary liabilities.

Concurrently, netLibrary announced that it voluntarily filed a petition with the U.S. Bankruptcy Court for the District of Colorado for relief under Chapter 11 of the U.S. Bankruptcy Code. The OCLC purchase offer includes a loan from OCLC, to be repaid upon the consummation of the asset sale, to fund netLibrary's on-going operations through the transition period. OCLC's purchase of netLibrary's assets and its operating- funds loan to netLibrary are both subject to approval of the bankruptcy court.

"Electronic books and other forms of electronic content are quickly becoming strategic drivers in the sharing and advancement of knowledge in the digital age," said Jay Jordan, OCLC president and CEO. "This potential alliance with netLibrary would advance our strategic directive to deliver technologies and services that support, extend and enhance the OCLC membership cooperative." Jordan added, "eBooks complement our growing e-journal collection and provide exciting new synergies for our cataloging, resource sharing, reference and digital preservation services."

"Across the OCLC cooperative, there is strong interest in OCLC's pursuing an alliance that would continue to make netLibrary's eBook collection available," said William J. Crowe, chair, OCLC Board of Trustees. "Indeed, 14 of OCLC's 16 U.S. regional network affiliates (BCR included) have arrangements for libraries in their regions to purchase netLibrary resources. The OCLC Board of Trustees has expressed its strong support for pursuing this proposed alliance with netLibrary."

"OCLC represents an excellent opportunity for netLibrary patrons, customers and content partners to continue to deliver the benefits of eBooks and electronic media to an expanding market. OCLC and netLibrary share a common commitment to grow and strengthen the role of libraries and educators in the digital age," said Rob Kaufman, president and CEO of netLibrary. "We are proud of netLibrary's role in pioneering the eBook and eTextbook markets. A potential alliance with OCLC would extend the opportunity to reach more patrons, grow catalog content and provide new and innovative learning opportunities in libraries, classrooms, homes and offices around the globe."

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