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Borders considering buying Barnes & Noble

C.E. Evans

Admiral
Admiral
Financier 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.
http://www.icv2.com/articles/news/18935.html

The only thing I see happening if this goes through are Borders and Barnes & Noble stores closing in some areas...
 
As long as my Borders Rewards doesn't cost me money to have, I'm good.

Tried to get a similar thing at Barnes & Noble, and they wanted me to pay $25 up front, without savings on the first purchase with it. Screw that noise.
 
I am disappointed to hear this.

The industry consolidated in Canada about a decade ago, and I think consumers lost out. If you're in a market fortunate enough to have a competitor up here, you're a lucky minority.
 
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Meh, it's important to have both Borders and Barnes & Noble. That way, I can decline to buy the $20 Blu-ray that sells for $40 at either store.
 
Well, I suppose it's better for Borders investors than just letting the company crumble. I wonder how they plan to use the B&N brand. Would they rename the stores or just keep the names the same (ala Waldenbooks)?

Obviously, the result is roughly the same for the rest of us: more bookstore closings.
 
In the UK, the largest chain bookstore Waterstones bought out its competitor Ottakars. And then when Borders began closing down its Books Etc stores, Waterstones took the stores from them. With Borders UK now defunct, Waterstones is the only chain bookstore that remains (with the exception of W H Smith which is not a dedicated bookstore).
 
I complained bitterly at the time, but I'm really part of the problem. I buy books on either Amazon or AbeBooks. If I buy a book in a shop any more, it's usually a £3.86 one from Asda.

While I'd love to be able to support bookshops, they're ultimately not the best choice any more.
 
Bookstores are awesome, they pull at me like a magnet when I walk by one.
 
I like Borders better than Barnes & Noble, so having the store near me change hands is a good thing. That being said, competition is also a great thing, so this will be a shame in the long run.
 
As long as my Borders Rewards doesn't cost me money to have, I'm good.

Tried to get a similar thing at Barnes & Noble, and they wanted me to pay $25 up front, without savings on the first purchase with it. Screw that noise.

This.

it's important to have both Borders and Barnes & Noble. That way, I can decline to buy the $20 Blu-ray that sells for $40 at either store.

And this. I buy most of my books through Amazon.com anyway, and if this consolidation goes through, that'll probably change "most" to "all."
 
Well, you just mentioned an example with the membership options above.

Yeah, but its the same discounts, too.

Its not like either store is offerin' Wal-Mart type prices for their books. Hell, not even Hasting's discounts their paperbacks anymore.

I get better service at Borders, so that's my preference. If one of 'em suddenly started takin' a few bucks off the price of the paperbacks I read, they'd get my business over the other.
 
An interesting turn of events, considering a few years ago the talk was that B&N would buy out Borders. I prefer the B&N cafe offerings and store aesthetics, but Borders tends to have a larger (if shrinking) selection.

it's important to have both Borders and Barnes & Noble. That way, I can decline to buy the $20 Blu-ray that sells for $40 at either store.

And this. I buy most of my books through Amazon.com anyway, and if this consolidation goes through, that'll probably change "most" to "all."

If you use their once or twice-weekly coupon, you can sometimes beat Amazon - I just picked up a DVD set for $41 (using the 33% coupon) that Amazon has for $50. Of course, you have to wait for the coupon, print it out, remember to take it with you, and make sure it it usable on the item you want. Not the best of worlds so the majority of my purchasing is still done with Amazon.
 
B&N has a 50% off Criterion movies every year, and for the most part those prices are better than where you can find them elsewhere. Doing price comparisons beforehand and finding the good coupons can net you good deals.

But one time I was at Borders and someone bought the Alien Quadrilogy DVD box set, which was like $40-$50 higher than at any old Best Buy. And at B&N a family was buying a Disney movie for their kid and it was double the cost of what Best Buy or Target was selling it for. They really take impulse buyers to the cleaners.
 
I am disappointed to hear this.

The industry consolidated in Canada about a decade ago, and I think consumers lost out. If you're in a market fortunate enough to have a competitor up here, you're a lucky minority.


Yeah, exactly. Chapters, Indigo, and Coles. You'd be lucky to find any independent bookstores in Canada anymore :( Heck, I can't even find any used book stores where I live anymore because of it. They simply can't survive among the big box store.
 
B&N has a 50% off Criterion movies every year, and for the most part those prices are better than where you can find them elsewhere. Doing price comparisons beforehand and finding the good coupons can net you good deals.

But one time I was at Borders and someone bought the Alien Quadrilogy DVD box set, which was like $40-$50 higher than at any old Best Buy. And at B&N a family was buying a Disney movie for their kid and it was double the cost of what Best Buy or Target was selling it for. They really take impulse buyers to the cleaners.


The USA is run off of stupidity of the people.
 
How is it competition if the books are the same price at both stores?

At a minimum, a greater chance of variety. If prices stay the same for both, odds are it's either because there isn't enough competition (two stores isn't a lot) or because that's the lowest price they could get and still operate.
 
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