Storytel buys Mofibo for £10m

Audio book streaming service Storytel has acquired Danish e-book and audio streaming service Mofibo for £10.36m (100m Danish crowns).

The service, founded in 2013, was among the first in the world to launch a digital book subscription service and has more than 100,000 subscribers. It now aims to "speed up its growth" following its acqusition by Storytel. Mofibo currently offers unlimited e- and audio-books for a fixed price a month in Danish, Swedish and Dutch markets.

All Mofibo's staff members remain at the company, The Bookseller understands, including its founder Morten Strunge and digital director Nathan Hull, formerly of Penguin Random House.

Strunge, Mofibo c.e.o., said: “I am very proud of what Mofibo has become in just a few years, and how we have done our part in innovating the book industry and successfully reached out to new readers and listeners. With a business like Mofibo, scale is the key to success. We are therefore excited to announce that Mofibo and Storytel have chosen to merge their respective business, and Storytel has therefore as of today bought 100% of the shares in Mofibo.

"Bringing Mofibo and Storytel together will secure a critical mass in our existing markets and improve our platform for further growth in new markets. The goal of this merger is to improve our ability to scale faster and speed up our growth.”

Following Mofibo’s sale and with the companies now merging, Strunge has reinvested 20m SEK (£1.65m) into the company and will join Storytel as part of the management team and drive forward their international expansion.

The issue price is set at £1.88 (22.75 Swedish crowns).