The firm’s market capitalisation hit a low of barely $750m. Amazon, the online bookseller that has caused so many of its problems, is worth $57 billion. One of the attractions of taking Barnes & Noble private is that it will be easier to make a big bet on electronic books. Such heavy investment does not sit well with the short-term obsession of the stockmarket. Despite launching its own e-reader, the Nook, last year, to challenge Amazon’s Kindle, the Sony e-reader and now Apple’s iPad, Barnes & Noble is struggling to hold its own in what is surely the book market of the future.
In short, the industry is in flux. Barnes & Noble has a much-admired brand, but that is no guarantee of survival. Bricks-and-mortar bookstores look increasingly out-dated, except as venues for leisurely coffee and book signings. Whoever ends up owning Barnes & Noble faces a tough task: adapt to the Brave New World, or be consigned to the History section.
Read more at The Economist.
