http://www.icv2.com/articles/news/18935.htmlFinancier and Borders investor William Ackman is ready to finance an acquisition of Barnes & Noble by Borders, according to a regulatory filing on Monday. Both Barnes & Noble and Borders have been losing money recently. B&N is much larger and has a much stronger balance sheet.
Among the “synergies” that could be achieved by combining the two companies would be store closings in competitive markets and consolidation of the two chains’ distribution networks. Anti-trust approval might be a problem, although a strong argument could be made that the biggest competitor for the two chains is actually Amazon, rather than each other.
B&N has been undertaking a strategic review in recent months to evaluate alternatives. The Wall Street Journal says that there are eight to ten potential acquirers looking at the company, so there’s probably more drama to come as the nation’s two largest book chains continue to find a way forward during the Great Recession and the book industry’s digital transformation.
The only thing I see happening if this goes through are Borders and Barnes & Noble stores closing in some areas...