Kobo trying to untangle itself from Borders mess

[tubemonkey]

Kobo trying to untangle itself from Borders mess

What adds some intrigue to the situation is that Borders is an investor in Kobo and holds a 11 percent minority stake. What happens to that stake in the liquidation is unclear, for it's possible that the stake will someday be worth a lot of money should Kobo end up being acquired (a distinct possibility) or go public. The company recently released the Kobo Touch Edition e-reader here in the U.S. and has announced it will soon be launching the e-reader Germany and other European countries with country-specific e-bookstores and apps.

A Bloomberg article yesterday said that Kobo along with other creditors filed motions in a Manhattan court objecting to the hurried liquidation of Borders.

The article noted that Kobo said it should have "the right of first refusal for any transfer of Borders' 11 percent stake in its equity, and Borders' shouldn't be allowed to sell information that Kobo has licensed to Borders."

Poor Kobo. First the headache of being associated with Borders and the confusion that the Kobo would no longer be supported; and now concerns over what'll happen to that 11% minority stake. What a mess.

[Suzanna]

Kobo issued a press release about this - Kobo: We’re NOT Borders And We’re Doing Just Fine, Thanks

According to that statement,

The Borders shares are subject to the terms of the Kobo shareholders’ agreement which, among other things, restricts their transfer or disposition.

I don't really know much about stocks and shareholder agreements. I wonder if they're petitioning just to let the courts know, hey, we get first right to buy back the stocks as per the terms of the agreement.

[SensualPoet]

It's unfortunate that Kobo has lost 400 book stores to distribute Kobo ereaders in; those will have to be made up with different deals like office supply stores, electronic stores and super department stores -- and Kobo already has relationships like that in place.

Kobo is a creditor of Borders to unpaid shipments of devices, and whatever services remain unpaid through being the outsourcing vendor for Borders as ebook merchant. The liquidation is expected to generate as much as $300 million; Kobo will get a piece of what they are owed.

The 11% shares of Kobo are worth something to someone; Kobo may be able to buy them back against whatever Borders already owes Kobo.

This is certainly not the desirable end-state for Kobo; but not necessarily a terrible mess. Existing Borders e-books customers will likely be converted over before the entity closes. That process began in earnest in May.

[sabredog]

Borders and Angus and Robinson here in Australia will be closing up all stores as well. The Kobo was sold through those stores and via their online presences.

Be interesting to see who Kobo choose to sell their ereaders here.

[Pomtroll]

Kobo wifi is being sold in store at Best Buy here. I'm waiting to see when it will have the Touch.

[RainingLemur]

We'll probably see them pop up in some other retailers, I imagine.

[CazMar]

Originally Posted by sabredog

Borders and Angus and Robinson here in Australia will be closing up all stores as well. The Kobo was sold through those stores and via their online presences.

Be interesting to see who Kobo choose to sell their ereaders here.

The whole Australian book thing - with restrictive practices and all - needs to be completely overhauled. The electrical/computer market is at the mercy of market forces, yet it manages to stay afloat. The book/ebook market is tied up in trade restrictions and has imploded. The execs at Amazon must be laughing all the way to the bank while Australians are now forced to buy overseas.
No doubt some highly paid public servant in Canberra (the Federal capital) is now saying "what are these ebook things?" and shuffling more paper while an entire industry disappears. Kobo would be smarter to sell direct from Canada .

[HistoryWes]

I saw an android tablet linked to the Kobo bookstore selling at CVS pharmacy. 129.00 by the way.

[sabredog]

Originally Posted by CazMar

The whole Australian book thing - with restrictive practices and all - needs to be completely overhauled. The electrical/computer market is at the mercy of market forces, yet it manages to stay afloat. The book/ebook market is tied up in trade restrictions and has imploded. The execs at Amazon must be laughing all the way to the bank while Australians are now forced to buy overseas.
No doubt some highly paid public servant in Canberra (the Federal capital) is now saying "what are these ebook things?" and shuffling more paper while an entire industry disappears. Kobo would be smarter to sell direct from Canada .

Pretty much. Successive governments are simply not doing enough to address the issue, except create more talkfest committees.

I would not except the current government to do anything as they are neck deep in carbon dioxide.

Mind you, if the KT was sold here it would be at least $50 more than a KT and associated postage ordered direct from Kobo or Indigo. The older model price certainly reflected that.

[Ditchleyportrait]

nm...

[tomsem]

Originally Posted by Pomtroll

Kobo wifi is being sold in store at Best Buy here. I'm waiting to see when it will have the Touch.

Fry's Electronics too, apparently. But they should just sell off of kobobooks.com too.

[kiwipippa]

Originally Posted by CazMar

The whole Australian book thing - with restrictive practices and all - needs to be completely overhauled. The electrical/computer market is at the mercy of market forces, yet it manages to stay afloat. The book/ebook market is tied up in trade restrictions and has imploded. The execs at Amazon must be laughing all the way to the bank while Australians are now forced to buy overseas.
No doubt some highly paid public servant in Canberra (the Federal capital) is now saying "what are these ebook things?" and shuffling more paper while an entire industry disappears. Kobo would be smarter to sell direct from Canada .

Hear hear, couldn't have said it better myself. Although I'm in New Zealand not Australia but the same thing applies.