Quote:
Originally Posted by SensualPoet
But you have to believe $250 million would be a much cheaper investment in getting Borders on track than four times that to merge with another weak player ... and probably still need more capital after that to get things moving.
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But that assumes that they want to own it long enough for $250 million to be spent and turn things around. Heck, that even assumes that it could be turned around. Given the losses at B&N stores as well, I think you're swimming against the tide. I think they would only see limited benefits from consolidation and downsizing with B&N that might stop the immediate hemorrhaging, perhaps enough to sell it and realize a profit. But long term they need to re-envision the bookstore. I think the real white knight for B&N is Starbucks.