Borders Reorganisation: News bids?

[SleepyBob]

Originally Posted by Nanopr

I think it will be very interesting to see what happens with the Kobo/Borders combo. They have the infrastructure to become the best "open" ePub based ecosystem in the US market. Books you buy from Kobo/Borders is a book you can read on any ePub supporting device. That is definitely not the case with the locked-in formats of Amazon and B&N.

Sony was on the right track on this, but they just did not have the business sense to get this done while they had a chance.

But what does Borders bring to the ecosystem? Not a lot, except for a storefront to sell the readers, which BAM or Best Buy or a number of other places can also do.

[fjtorres]

Borders has tentatively accepted a buyout offer.
They also submitted a motion for liquidation if the offer is not accepted by the court.
http://www.canadianbusiness.com/arti...the-month-club

This will open up an outright auction until the court decides to accept the highest bid or the liquidation plan.

Either way, the Kobo/Borders tie-up looks to be over for good.

[Phogg]

Originally Posted by Nanopr

What you say is correct. But i'm referring to being able to move your books across devices. You cannot read Amazon or B&N books outside of their ecosystem without incurring in the DRM removal, which should be unnecesary (and against the law).

Dead wrong.

DRM removal should be illegal if and only if the material is rented, leased, or lended.

In the US, the term sale implies ownership, and doing what you want with something goes with ownership.

If the publisher or author wishes to maintain control of their work through DRM, they are going to have to try to compete against book sellers...as a clearly stated book leaser.

I fully expect precedent to be upheld if this ever goes to court. I also do not expect Amazon or Simon & Schuster or anyone else to prosecute anyone removing DRM that isn't distributing because they don't want this knocked down.

DRM won't stand up in a federal court if the purchaser was told it was a sale rather than a lease.

[SensualPoet]

Originally Posted by fjtorres

Borders has tentatively accepted a buyout offer.
They also submitted a motion for liquidation if the offer is not accepted by the court.
http://www.canadianbusiness.com/arti...the-month-club

This will open up an outright auction until the court decides to accept the highest bid or the liquidation plan.

Either way, the Kobo/Borders tie-up looks to be over for good.

There is more detail today at Bloomberg: http://www.bloomberg.com/news/2011-0...uy-stores.html

Najafi had been reported interested in about half the remaining 405 stores and if that remains true, the balance will be liquidated by Hilco. Hilco was in the news this week for having purchased HMV Canada -- a network of 121 stores for $3.2 million.

There was another party interested in Borders -- Gore Brothers -- and they have an opportunity to evaluate the Najafi bid before a July 19 court decision. Unfortunately, the Gore folks seemed only interested in about half the stores as well.

[fjtorres]

Originally Posted by SensualPoet

There is more detail today at Bloomberg: http://www.bloomberg.com/news/2011-0...uy-stores.html

Najafi had been reported interested in about half the remaining 405 stores and if that remains true, the balance will be liquidated by Hilco. Hilco was in the news this week for having purchased HMV Canada -- a network of 121 stores for $3.2 million.

There was another party interested in Borders -- Gore Brothers -- and they have an opportunity to evaluate the Najafi bid before a July 19 court decision. Unfortunately, the Gore folks seemed only interested in about half the stores as well.

Half the remaining stores---about a third of the pre-bankrupcy size---sounds about right for a shot at profitability if Najafi can quickly execute on the stated desire to get Borders serious about ebooks. At a minimum they need to get a generic ebookstore website, preferably with a branded flagship reader, in place by Xmas.
A tough row to hoe.
But not impossible.
I wonder if the phones are ringing at Bluefire.

[SensualPoet]

Really? Do you think Borders needs its own branded ebook store? Najafi has bought up a number of Book of the Month club type operations in North America and Europe. Many of us here have stated there is medium term profits to be made in bricks and mortar bookstores but they need to continually refine operations to meet evolving demands.

Frankly, I have no idea what they plan to do with a 200ish strong chain of stores but clearly they have plans other than morph them into a website ultimately.

[fjtorres]

Over at ebooknewser they have this quote:

Mike Edwards, Borders Group President, stated: “We are pleased to take another important step forward as we position Borders for a vibrant future and sustainable earnings growth. Since the filing, we have made significant progress in reducing our cost structure, refocusing our merchandise offering, and building our eBook business.* We look forward to wor

I don't think you build an ebook business of your own off somebody else's hardware *and* website. I might be wrong, but selling reader hardware and letting somebody else sell the ebooks is what Best Buy, Walmart, Staples, etc do and nobody thinks of them as having an "ebook business".
I do think that if you want to be a player in ebooks you need to bring your own brand and capture as much revenue as possible. Even if the backend is (initially) run by somebody else.

As to the stores, note the "refocusing our merchandise offering" clause.
200 Borders storefronts don't have to sell just books.t

[SensualPoet]

Yah, I absolutely agree that the stores will do more than sell books. What exactly, I don't know ... but they are committed to the bricks and mortar model is my point.

As for a white label ebook store, they do have a minority interest in Kobo and that keeps them in the right place. (Presumably they are buying those shares as part of the package.) They may want to find different revenue sharing models but I don't know whether they want to invest in something new ebookwise.

[fjtorres]

If Borders wanted to continue the outsourcing of their branded ebookstore to Kobo, why send all existing customers permanently to the Kobo branded site? At a time they were looking at a deal to a buyer that intends to play in the ebook business? That sounds like a door closing.

To me, the move and the timing says the New Borders will be a competitor to Kobo, not a feeder/affiliate. Probably under a new brand, ala Kindle/Nook, and not from Borders.com.
(Shrug.)
We'll find out soon enough, either way.

[newlaza]

I bid 115 rupees. Thank you.

[Peggy Trentini]

Can you publish both on Amazon and Borders?

[fjtorres]

Everywhere you want to.
No ebookstore turns away legitimate content.
Of course, if you're willing to sign up for an exclusivity clause, that too is possible.

[SensualPoet]

Looks like Borders is running out even last minute chances. Wall Street Journal today said the tentative deal with Najafi Group has fallen through leaving the only course of action total liquidation. The court will start the process next Tuesday July 19, picking a liquidator, if nothing else changes.

[fjtorres]

Originally Posted by SensualPoet

Looks like Borders is running out even last minute chances. Wall Street Journal today said the tentative deal with Najafi Group has fallen through leaving the only course of action total liquidation. The court will start the process next Tuesday July 19, picking a liquidator, if nothing else changes.

Did the report say why the deal fell through?
Did the court reject the bid or did creditors torpedo it?
It'll be interesting to see who gets the name if they go to liquidation.

[SCION]

Very sad. I can only imagine the anxiety all the employees must be feeling. Stressful.

I don't care for Borders, but I certainly don't want them totally gone! These huge empty storefronts are unsettling.