The deal is valued at $18.3 million, based on Friday's closing Nasdaq price of 14-1/2 a share and 25.2 million shares outstanding. The transaction is expected to close later this quarter, the companies said.

The move increases Audible's exposure to potential customers and is another initiative that Audible recently has undertaken to expand the availability of its products. Under the terms of the agreement, Amazon.com's more than 16 million customers will be able to purchase digital audio content from Audible.com. The content provided includes newspapers, magazines, audiobooks, speeches, language lessons and radio programmes, they said. In exchange for the promotion of Audible.com's content and services, Amazon.com will receive $30 million from Audible over three years, the companies said.

Earlier this month Microsoft Corp. said it would integrate Audible technology into its Microsoft Reader software, which is a new software application for personal computers and handheld computing devices that lets users hear and read electronic books and other information. In early January Audible and comedian Robin Williams announced that they would begin doing a half-hour weekly programme in April.