Today, William Ackman and his Pershing Square Capital Management (which own 37% of Borders) stated in a regulatory filing that they would provide financing to Borders to offer $16 a share for Barnes and Noble.
This is 21% higher than Barnes and Nobles' closing price on Friday.
Would this combination be a good idea? On one hand, it sounds good because there are many people who still love bookstores. Also, they could invest in making the Nook better.
On the other hand, Yahoo quoted an analyst:
Simba Information's senior trade book analyst Michael Norris said the deal would simply be a distraction to the booksellers and "fundamentally weaken not just the combined entity but the consumer book industry in general."
"A proposed combined entity would spend a year thinking about what overlapping stores to close, and at least another year combining systems and operations while trying to hang on to talent with both hands," he said. "While that's going on, rivals like Amazon, Apple and Google will just be steaming ahead unimpeded."
Also, the same Yahoo article had an interesting comment: If you tie two anchors together do they sink faster?
Monday, 6 December 2010
Should Borders Buy Barnes and Noble? Ackman Offers Financing For $16 Bid
Posted on 07:36 by Unknown
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