Barnes & Noble to book a buyout deal for Borders?
Posted by: in Companies Competitive StrategyFiled under: Deals, Competitive strategy, Amazon.com (AMZN)
When I go to a Barnes & Noble (NYSE: BKS) or a Borders (NYSE: BGP) store, I really can’t tell much of a difference. That’s not a bad thing - at least for me. Hey, I have lots of choices - and not just books.
But for investors, the situation is a problem. So, instead of fighting, why not B&N and Borders join forces?
Well, according to the Wall Street Journal [a paid publication], there are signs of a possible deal as B&N has put together a team to explore the option.
However, there is a large hurdle: antitrust regulators. The federal government will scrutinize the deal heavily given that Barnes & Noble is #1 and Borders is #2 in the US marketplace.
Barnes & Noble will argue that the market is much different now with online operators like Amazon.com (NASDAQ: AMZN).
And timing is another key. After all, if there’s a change in the White House, antitrust enforcement is apt to get tougher.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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