Rakuten takes over ebook firm

Japanese retailer Rakuten recently acquired the ebook firm Kobo for £198 million, in an effort to obtain a larger stake in the electronic book industry. The retailer, which has operations in numerous industries, is also hoping the acquisition will help expand its social networking services.

BBC News reported Rakuten wants to expand the ebook company into selling other digital goods and hardware devices. Besides Kobo, Rakuten has also acquired three European online retailers over the past two years: the U.K.'s Play.com, France's Price Minister and Germany's Tradoria.

The sale might be good for Kobo as well as Rakuten. The Canadian Press reported Rakuten is a big enough company to enable Kobo to grow and challenge competitors like Apple and Amazon. Heather Reisman, CEO of Indigo Books and Music, which sold its majority stake in Kobo to Rakuten, told the CP the decision to sell was based on finding a buyer who would put the company in the best position possible for success.