This post has been updated with new information.
Neither Amazon nor Simon & Schuster have publicly announced the deal, but Publishers Lunch reports that it marks a return to the agency pricing model, allowing the publisher to set its own ebook prices.
Under the terms, which according to Publishers Lunch involve Simon & Schuster authors “retaining the same share of income — 25% of receipts that are 70% of the consumer selling price — that they have had since the publisher first moved to agency in 2010,” Amazon’s prerogative to discount the publisher’s ebooks is sharply limited.
Update: Simon & Schuster confirms the agreement, writing in a letter to authors and agents that “it is economically advantageous for both Simon & Schuster and its authors and maintains the author’s share of income generated from eBook sales.”
The deal is said to cover both Simon & Schuster’s print and ebooks and takes effect January 1, 2015. Both sides are reportedly pleased with the outcome.
Meanwhile, Hachette remains locked in a standoff with Amazon over its own distribution contract, and it’s uncertain whether or how the Simon & Schuster deal might shift the dynamic of the ongoing negotiations.
We’ll update this post as more information becomes available.