Amazon strikes deal with major publisher Simon & Schuster on e-book prices

Online book retailer Amazon.com Inc said on Monday it has signed a multi-year deal with Simon & Schuster Inc, the second Big-Five book publisher, on the future price of e-books.

Amazon, which had been in talks with Simon & Schuster since July over pricing, confirmed the deal first reported by the Business Insider news blog that the two had reached an agreement.

Amazon had been locked in a months-long standoff with publisher Hachette Book Group, the fourth-largest U.S. book publisher owned by France's Lagardere , over digital book pricing. That has led to numerous issues for authors.

Industry experts had expected other publishers eventually to be drawn into negotiations as well, as the Internet retailer tries to set new benchmarks for the e-book market.

Negotiations with Simon & Schuster took about three weeks and closed two months before Amazon's contract expired, according to Business Insider.

Simon & Schuster made its original offer and an agreement was reached after a few changes by Amazon, the source told Business Insider.

(Reporting by Arathy S Nair in Bangalore and Deepa Seetharaman in San Francisco; Editing by Maju Samuel and Diane Craft)