Amazon and Simon & Schuster have reached a multi-year agreement that will allow the publishing company to sell electronic versions of its titles through the e-commerce giant.
The deal takes place two months before Amazon's contract with Simon & Schuster is scheduled to expire, according to CNET. A letter to Simon & Schuster's writers states that the company will have control of prices for e-books "with some limited exceptions."
Amazon said in an email that the deal gives it a chance to expand its business with Simon & Schuster, as well as for the publisher's authors to provide books for a wider audience.
"Importantly, the agreement specifically creates a financial incentive for Simon & Schuster to deliver lower prices for readers," the company said.
Some of Simon & Schuster's recently published titles include "The Innovators" by Walter Isaacson and "Nora Webster" by Colm Toibin, The Wall Street Journal reported.
"We are very happy with this agreement as it is economically advantageous for both Simon & Schuster and its authors and maintains the author's share of income generated from e-book sales," Carolyn Reidy, CEO of Simon & Schuster, wrote in the letter, which was sent out on Monday. She added that the deal "addresses our mutual concerns about preserving the value of our intellectual property in the marketplace."
Amazon continues negotiations with competing book publisher Hachette, but both companies were unable to agree on a contract earlier this year, CNET reported. Amazon took down pre-order buttons for upcoming books from Hachette and decided not to restock the publisher's titles. The e-commerce company stated in May that it was restricting sales on some of Hachette's books, and Hachette accused Amazon of delaying shipments on purpose.
Amazon's tactics received criticism from numerous authors, with almost 900 of them, including Stephen King, Jennifer Egan and John Grishman, signing a letter in July in opposition of the company.
Discussions with Hachette are expected to continue, and Amazon is also expected to begin negotiations with other publishers, including Macmillan, Penguin Random House, and HarperCollins Publishers, The Wall Street Journal reported. A comment has not been provided from spokespeople for these three companies.
A spokeswoman for Hachette declined to comment on Amazon's new deal with Simon & Schuster.
