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Old 08-30-2018, 05:48 PM   #43
Fbone
Is that a sandwich?
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Quote:
Originally Posted by fjtorres View Post
Makes sense; they're prettybig as is, but...
Wouldn't it be cheaper for them to just rent space and use their airport layouts?
They already have the publisher/distributor contracts and backend infrastructure (HR, warehouses, logistics, etc) in place.
They ran out of airports and so can not expand in the US. And they know how to operate bookstores in smaller spaces. Plus, they can buy B&N with cash just from 2017 profits. They do have $4 billion in debt from acquisitions, though.

Indigo while it doesn't have long term debt doesn't have the cash. It would probably have to issue stock which may not go over well with B&N and Indigo shareholders. And B&N is four times larger (in sales) than Indigo and would be a heavy burden.

Either way B&N would get stripped down considerably.

It's a fun mental exercise.
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