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Old 05-16-2011, 11:03 AM   #5
Kali Yuga
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Yeah, this is only "news" for people who haven't paid attention to Borders' big flame-out.

Borders does not own Kobo, so while they are probably not happy, they should be able to continue.

The Bloomberg article is rather inaccurate in one respect, namely that ebooks had very little to do with Borders' demise. They expanded unwisely, took far too long to develop their own website (they made a deal with Amazon to have them run their site), had a cash crunch at the worst possible time, had to secure very expensive credit during the financial crisis, and the incompetent and/or rotating management was unable to dig them out of an increasingly bigger hole.

They were making a huge mistake by outsourcing their ebooks, although in the short term it was their only option. However, working with Kobo was far less costly than rolling their own, thus it was unlikely to be a major factor in their demise -- especially since ebooks weren't even on the radar when they started to slide back in 2007.

Kind of a surprising error, from a business magazine....
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