From Ron at Galleycat
Would Amazon Buy Barnes & Noble?
Remember that speculation a few weeks back about a possible Borders/Barnes & Noble merger, based on little more than the fact that one investment group had shares in both companies and the guy writing the article thought it would be a good idea? SeekingAlpha, the website that floated that theory, now presents another bold take on the bookselling biz, from financial analyst George Gutowski: "[Amazon.com] should consider buying Barnes & Noble."
"An acquisition allows the combination of best of breed in both the internet and retail categories," Gutowski writes. "Barnes & Noble can entirely close down poorly performing internet distribution. The combination will minimize hyper price competition and allow markets for authors to be developed. In other industries, that is called profits and product development."
I'm not entirely convinced on how this "allows markets for authors to be developed," and I'm sure that independent booksellers would have their own opinion about what good such a move would do the industry. So sure, in fact, that I'm inviting you to tell me what you think.
Posted by Ron | 10:53 AM | Bookselling | Email this post