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 big 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 likely to get tougher.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
5-21-2008 @ 2:14PM
Neil said...
Just what America needs ... another gigantic merger of chain stores. Less choice, higher prices.