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I am not a financial analyst but I do not think this is a good proposition for B&N which is in a much stronger financial condition than Borders. Combining the two will increase their total liabilities and weaken the stronger of the two. Brick and Mortar stores are losing to the internet competition mainly due to the financial burden that comes with the inventories, staff and leased store fronts. To fight for a chance to survive, closing of the physical book stores except in the key strategic locations will be inevitable. In my opinion, even though it has been a year, B&N has been coming out on top of Borders in the ebook industry with the introduction of the Nooks and various nook apps. The B&N stores that I’ve been going to are always jam packed while the Borders stores are lacking in traffic. Borders is on the verge of bankruptcy and its stock is at a dismal $1.47 while B&N is at $15.3. A company like Borders can’t become this dismal if the management is semi-descent. It seems unbelievable for people in Main Street to understand how can the weak and the broke can come up with funding to buy out the stronger rival. It is to the best interest of B&N to just wait for Borders to go bankrupt and then pick up some of the company’s assets at a discounted price.
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