Barnes & Noble Said to Be Likely to End Search Without Buyer

kjk · 03-24-2011, 07:24 PM

http://www.bloomberg.com/news/2011-0...ut-a-sale.html

Quote:

The chain, facing increasing competition as more people buy electronic readers such as Amazon.com Inc. (AMZN)’s Kindle, hired Lazard Ltd. last year to explore a possible sale. Barnes & Noble makes the Nook e-reader, and some potential bidders balked at a purchase because of how long it may take the chain to generate more digital sales, two of the people said.

A few private-equity funds determined Barnes & Noble is relatively unproven in digital sales and would have to compete in that area with companies such as Apple Inc., Amazon.com and Google Inc., said the two people.

GA Russell · 03-24-2011, 07:54 PM

Well, I would say that Apple and Google are rather unproven in digital book sales as well.

Nevertheless, it seems reasonable to me to suggest that a track record of success in selling hardback books at b&m stores does not necessarily indicate future success in selling eBooks via the internet. And as I understand it, that is what B&N is trying to sell to potential investors.

Barty · 03-24-2011, 08:01 PM

Ouch. Remember when BN was the 8000lb godzilla stomping on indies (remember You've got mail?) Now it's monster chow for Amazon.

Kali Yuga · 03-25-2011, 08:20 AM

This may not be bad news for B&N, by the way.

They initially wanted to find a buyer and go private in part because of the infighting with Burkle. With that more or less over, the need to go private is a bit smaller.

Both Amazon and Apple are leagues ahead in terms of selling digital content, by the way. They've done it for years and are thoroughly set up for it.

GA Russell · 03-25-2011, 12:57 PM

Kali, (if I understand you correctly) why do you think that Apple's success in selling music (whose market is mostly teenagers) will help them sell books to adults?

kjk · 03-25-2011, 01:23 PM

Quote:

Originally Posted by GA Russell

Kali, (if I understand you correctly) why do you think that Apple's success in selling music (whose market is mostly teenagers) will help them sell books to adults?

According to Paid Content, 3/4ths of digital music buyers are over 25 years old.
http://paidcontent.org/article/419-t...phics-problem/

GA Russell · 03-25-2011, 02:02 PM

Thanks, kjk. Perhaps the teenagers are all file-sharing, because clearly 75% of the music being made is not for the adult market.

Books, on the other hand, are an adult market, notwithstanding the popularity of Harry Potter and Stephanie Meyers.

Still, if 75% of iTunes' business is to adults, I will concede Kali's (and the article's) point about Apple .

Kali Yuga · 03-25-2011, 02:18 PM

GA, I think it's more that both Amazon and Apple have a head start at online transactions and selling digital content.

Both also work with a variety of digital wares. E.g. Apple sells music, apps, video (buy and rent) and now books. Amazon also sells music, video, books, is moving into apps. They also have S3, which is the backbone for services like Dropbox, and they've commercialized for years now.

B&N can catch up, and I would say they've actually done a decent job -- possibly more than analysts and investors credit. They've also done a good job at leveraging the physical stores to push the Nook. But they're still a bit behind.

Fbone · 03-25-2011, 03:02 PM

Quote:

Originally Posted by Kali Yuga

B&N can catch up, and I would say they've actually done a decent job -- possibly more than analysts and investors credit. They've also done a good job at leveraging the physical stores to push the Nook. But they're still a bit behind.

The recent Goldman Sachs report listed B&N as having 27% share of the ebook market. That's a healthy chunk but they will need to grow or maintain at least that number. The question is what will it take? And how much?

SensualPoet · 03-25-2011, 08:31 PM

Unless B&N has a credible, urgent plan to make money from its bricks and mortar stores, it is doomed. Digital books and the Nook are much too little and much too late to save B&N. The tragedy is the demise of Borders may tempt B&N to be complacent about non-performing physical stores and margins within that part of the business.

Steven Lyle Jordan · 03-28-2011, 11:00 AM

True Confessions dept:

When my Nook Color automatically updated its OS, resulting in all of my books and magazines disappearing and forcing me to re-download them all, I thought for a split-second that B&N had shut down over the weekend.

Heh-heh. Silly me!

kjk · 03-28-2011, 12:29 PM

Quote:

Originally Posted by Steven Lyle Jordan

True Confessions dept:

When my Nook Color automatically updated its OS, resulting in all of my books and magazines disappearing and forcing me to re-download them all, I thought for a split-second that B&N had shut down over the weekend.

Heh-heh. Silly me!

You had to re-download all the books and magazines because of an update?
Now I feel bad complaining when iBooks re-arranged my bookshelf order after updating

arkietech · 03-28-2011, 01:01 PM

Quote:

Originally Posted by Steven Lyle Jordan

True Confessions dept:

When my Nook Color automatically updated its OS, resulting in all of my books and magazines disappearing and forcing me to re-download them all, I thought for a split-second that B&N had shut down over the weekend.

Heh-heh. Silly me!

I would save them to a PC and then burn a dvd. This marketplace is loaded with potential disaster.

jersysman · 03-28-2011, 01:38 PM

Quote:

Originally Posted by Steven Lyle Jordan

True Confessions dept:

When my Nook Color automatically updated its OS, resulting in all of my books and magazines disappearing and forcing me to re-download them all, I thought for a split-second that B&N had shut down over the weekend.

Heh-heh. Silly me!

Is your Nook rooted? I didn't have to re-download anything after the last update.

Steven Lyle Jordan · 03-28-2011, 01:45 PM

Quote:

Originally Posted by arkietech

I would save them to a PC and then burn a dvd. This marketplace is loaded with potential disaster.

The books are already saved on my PC. Haven't tried it with the store-downloaded magazines yet...

Quote:

Originally Posted by jersysman

Is your Nook rooted? I didn't have to re-download anything after the last update.

Nope, not rooted.

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03-24-2011, 07:54 PM	#2
GA Russell Ticats/Als, Riders/Lions Posts: 7,717 Karma: 31487351 Join Date: Aug 2009 Location: Raleigh, NC Device: Paperwhite, Kindles 10 & 4 and jetBook Lite	Well, I would say that Apple and Google are rather unproven in digital book sales as well. Nevertheless, it seems reasonable to me to suggest that a track record of success in selling hardback books at b&m stores does not necessarily indicate future success in selling eBooks via the internet. And as I understand it, that is what B&N is trying to sell to potential investors.

03-24-2011, 08:01 PM	#3
Barty doofus Posts: 2,555 Karma: 13089041 Join Date: Sep 2010 Device: Kobo Libra 2, Kindle Voyage	Ouch. Remember when BN was the 8000lb godzilla stomping on indies (remember You've got mail?) Now it's monster chow for Amazon.

03-25-2011, 08:20 AM	#4
Kali Yuga Professional Contrarian Posts: 2,045 Karma: 3289631 Join Date: Mar 2009 Device: Kindle 4 No Touchie	This may not be bad news for B&N, by the way. They initially wanted to find a buyer and go private in part because of the infighting with Burkle. With that more or less over, the need to go private is a bit smaller. Both Amazon and Apple are leagues ahead in terms of selling digital content, by the way. They've done it for years and are thoroughly set up for it.

03-25-2011, 12:57 PM	#5
GA Russell Ticats/Als, Riders/Lions Posts: 7,717 Karma: 31487351 Join Date: Aug 2009 Location: Raleigh, NC Device: Paperwhite, Kindles 10 & 4 and jetBook Lite	Kali, (if I understand you correctly) why do you think that Apple's success in selling music (whose market is mostly teenagers) will help them sell books to adults?

03-25-2011, 02:02 PM	#7
GA Russell Ticats/Als, Riders/Lions Posts: 7,717 Karma: 31487351 Join Date: Aug 2009 Location: Raleigh, NC Device: Paperwhite, Kindles 10 & 4 and jetBook Lite	Thanks, kjk. Perhaps the teenagers are all file-sharing, because clearly 75% of the music being made is not for the adult market. Books, on the other hand, are an adult market, notwithstanding the popularity of Harry Potter and Stephanie Meyers. Still, if 75% of iTunes' business is to adults, I will concede Kali's (and the article's) point about Apple .

03-25-2011, 02:18 PM	#8
Kali Yuga Professional Contrarian Posts: 2,045 Karma: 3289631 Join Date: Mar 2009 Device: Kindle 4 No Touchie	GA, I think it's more that both Amazon and Apple have a head start at online transactions and selling digital content. Both also work with a variety of digital wares. E.g. Apple sells music, apps, video (buy and rent) and now books. Amazon also sells music, video, books, is moving into apps. They also have S3, which is the backbone for services like Dropbox, and they've commercialized for years now. B&N can catch up, and I would say they've actually done a decent job -- possibly more than analysts and investors credit. They've also done a good job at leveraging the physical stores to push the Nook. But they're still a bit behind.

03-25-2011, 08:31 PM	#10
SensualPoet Wizard Posts: 2,302 Karma: 2607151 Join Date: Nov 2009 Location: Toronto Device: Kobo Aura HD, Kindle Paperwhite, Asus ZenPad 3, Kobo Glo	Unless B&N has a credible, urgent plan to make money from its bricks and mortar stores, it is doomed. Digital books and the Nook are much too little and much too late to save B&N. The tragedy is the demise of Borders may tempt B&N to be complacent about non-performing physical stores and margins within that part of the business.

03-28-2011, 11:00 AM	#11
Steven Lyle Jordan Grand Sorcerer Posts: 8,478 Karma: 5171130 Join Date: Jan 2006 Device: none	True Confessions dept: When my Nook Color automatically updated its OS, resulting in all of my books and magazines disappearing and forcing me to re-download them all, I thought for a split-second that B&N had shut down over the weekend. Heh-heh. Silly me!