Penguin no longer allowing libraries to loan out their ebooks

In an announcement made just yesterday, Penguin said that the Overdrive ebooks published by Penguin are no longer available for us to loan to our patrons in the Kindle format and new titles from Penguin won't be made available at all. More information can be found at the Digital Shift blog or in a press release from Overdrive.
Update: As of today (11/22/11), Penguin has agreed to restore Kindle lending - through the end of the year. More information at Yahoo News.