Quote:
Originally Posted by Kali Yuga
At any rate, there is absolutely no connection between B&N trying to get bought out and/or go private, and the shift to ebooks.
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There's every connection.
The shift to e-books is expensive. It would be easier to do if the company were taken private. Since the company isn't private, the cost of making the shift has pushed stock prices down, making stockholders unhappy and making the company cheaper to buy.
Ron Burkle isn't happy with the e-book shift, because it's cost him a bunch of money. If it continues, it will cost him even more money, unless he sells out now at a loss. He'd rather take control of the company and get it to quit "wasting" its money on e-books, college bookstores, and any bookstores that aren't really profitable. Burkle doesn't much care about books, e- or otherwise. He just wants B&N to stop spending money on anything it doesn't absolutely have to, so it will generate big profits for a year or so, which will in turn run the stock price way up, then he can sell his stock before B&N flames out. (You can tell I'm not a fan of Ron Burkle.)