CB: Heather says itís going to take $100 million next year to keep Kobo competitive. Do you think thatís a fair number?
MS: You know the thing thatís been constant from the beginning is that the capital requirements in this market continue to grow. And I think the reason for that is that the transition to digital just continues to move faster than anyone expected. Certainly the capital needs in the next couple of years, without revealing too much about strategy, is in the hundreds of millions. And whether a hundred gets you to 6 months or 12, weíll seeóbut itís certainly in the hundreds of millions.
CB: And Rakuten's obviously willing to invest those huge sums in this venture.
MS: Absolutely. They built a tremendous business as an e-commerce player n Japan, the largest economy outside of the U.S., and they have been expanding globally. They see how important digital content is to the future of e-commerce for them.
If that is true, where does that leave B&N?