From an email I received from Smashwords:
FYI, Smashwords is working with Califa, a consortium of 220 California libraries, to support the development of their ebook aggregation service for member libraries. Library Journal broke the news tonight at http://www.thedigitalshift.com/2012/06/ebooks/califa-lands-325000-in-funding-for-ebook-ownership-project-deal-close-with-smashwords/
There are two cool pieces to this:
1. They’re going to acquire an opening collection of our top 10,000 best-selling ebooks.
2. Smashwords and Califa will collaborate to create local library publishing portals that will allow patrons to publish and distribute ebooks through Smashwords for acquisition and listing by their local library. These ebooks will also be available for sale through the Smashwords distribution network, which includes Apple, Barnes & Noble, Sony, Kobo, Baker & Taylor’s Blio, and Diesel. The books will also be distributed to the new Smashwords library aggregators including Baker & Taylor’s Axis360 platform and 3M’s Cloud Library platform (3M announced the Smashwords relationship earlier this month at BEA).
We’re not planning a formal announcement of this until after we get closer to launch (I don’t have a date, but likely late summer, early fall), but thought I should give you a heads up now that the cat’s out of the bag on our plans.