Thursday, May 22, 2008

B&N exploring acquisition of Borders

According to the WSJ: "Barnes & Noble Inc., the nation's largest book chain by sales, has assembled a team of executives and advisers to study the possibility of acquiring No. 2 chain Borders Group Inc., according to a person familiar with the situation." Click here to read the rest of the article.

This would be a very dramatic development for the book retail industry. The same article estimates that B&N does about 20-22% of retail sales, compared to 10-12% for Borders and 15% for Amazon.

While it's probably a longshot, it wouldn't surprise me if a deal happens. There's a lot of pressure on retailers right now, and online shopping is changing consumers' buying habits.



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