From MediaPlay News:
When Amazon launched in 1994, founder Jeff Bezos envisioned his online bookseller competing against local stores and national chains such as Barnes Noble.
And for four years Amazon did just that: Sell books over the Internet more cheaply than anyone else – including Barnes & Noble, which remains one of the last-standing brick-and-mortar book (and packaged media) retailers.
Now Barnes & Noble is in financial trouble. It generated an operating loss of $26.7 million in the most-recent fiscal period. Revenue dipped 2% to $753.2 million.
The Nook segment – B&N’s attempt to compete with Amazon through a branded tablet device and digital (movies, TV shows, music) content – posted a $1.5 million operating loss. Revenue dropped nearly 17% to $21.7 million from $25.9 million last year.
. . . .
Earlier this year [Amazon] became Mercedes-Benz’ largest single customer for the Sprinter van – a fleet order many speculate the company will use for local deliveries.
Acquiring Barnes & Noble would give Amazon 633 retail/distribution locations – many in prime mall locations.
Link to the rest at MediaPlay News
Or Amazon could purchase the assets of Barnes & Noble that were of potential value to Amazon for even less money in a bankruptcy sale.
Because they need to take on debt for a tax write-off? That would be the only reason I could think of for Amazon to buy B&N.
Bezos isn’t that dumb. He is already very good at getting tax write-offs by making legitimate investments that will pay off in the future. He doesn’t need to buy something that will only lose him money.
https://www.idsnews.com/article/2018/11/bloomington-barnes-and-noble-closing-in-february
Quick read. Notice how they don’t mention buying or selling books?
Signature quote:
“Junior Jasmine McClain was sitting in the bookstore café Thursday afternoon and said she was shocked when she heard the store was closing.
“Even though I don’t come here a lot, this is a perfect off-campus study spot for people who live in the apartments around here,” McClain said. Although McClain lives on campus, she said it’s still conveniently close.
“I like the quiet and the convenience,” McClain said. “It’s not too far from campus, and it’s right by food and restaurants.”
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A common plaint about closing B&N’s.
Sounds more like a public library than a bookstore, doesn’t it?
Yup.
I go to book signings in bookstores to sell my regional work. Whenever I find myself in one of our big box Chapters stores I am amazed and saddened by how many folks walk past all of the shelves and head for the coffee shop to sip on a mocha-triple-latte-shazam.
Not to mention the shelves filled with mugs and cutlery and blankets and reading socks, instead of books.
Okay, so the reading socks are pretty cool…
I am amazed and saddened by how many folks walk past all of the shelves and head for the coffee shop to sip on a mocha-triple-latte-shazam.
If they didn’t have the mocha, mugs, and cutlery, those people wouldn’t even come in the doors.
The thing is, Chapters don’t have the mocha, mugs, and cutlery. Starbucks does. If those people walk to and from Starbucks without buying anything in the store along the way, it does nothing for Chapters’ bottom (or top) line.
And that’s even sadder.
I’ve met and/or overheard far too many people at my last two book signings saying things like “Books? I don’t read books.” or “I don’t think I’ve EVER read a book.”
Acquiring Barnes & Noble would give Amazon 633 retail/distribution locations – many in prime mall locations.
B&N doesn’t want them. Why would Amazon?
As DaveMich pointed out, someone really wants/thinks Amazon would have some use for what’s left of B&N (maybe the OP still has B&N stock he’s hoping to cash in on …)
I also agree with PG, much better to just pick the bones they want out of a bankruptcy sale.
Is it just coincidence that I’m seeing a bunch of articles with almost the same theme – Amazon, buy B&N, please? Some of these really make me wonder what the qualifications are for being a business analyst.
Amazon’s distribution centers are (relatively) inexpensive warehouses, not (relatively) expensive mall locations — which, if you’re paying attention, are not making a profit. Why pay money for a bunch of unprofitable store leases?
.
This one was a real howler…
https://www.thestreet.com/investing/stocks/amazon-killed-barnes-noble-now-it-could-buy-it-14733932
No understanding of the book business whatsoever.
.
Or how about this?
https://seekingalpha.com/article/4225207-amazon-buy-barnes-and-noble
Consuming the carcass of B&N would be terrible PR for Bezos. There will be enough ADS in the air when B&N goes belly up, no need to rub salt in the wound.
And Amazon Go locations? Amazon puts a lot more thought into site selection than this guy does. Don’t quit your day job, fella.