Kobo trying to untangle itself from Borders mess
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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."
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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.