06-06-2019, 02:32 PM | #1 |
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B&N being bought?
It's being reported that Barnes and Noble is nearing a deal to be bought by Elliott Management Corp, a hedge fund. The deal isn't final, but if it happens, it will be interesting to see what effect it has.
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06-06-2019, 02:59 PM | #2 | |
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Reported today by The Wall Street Journal. (Article is behind a paywall.)
Coverage by CNBC here: Elliott Management reportedly in lead to acquire bookseller Barnes & Noble Quote:
Last edited by jhowell; 06-06-2019 at 03:04 PM. |
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06-06-2019, 03:15 PM | #3 |
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For shareholders this might be a really good deal. But unless this turns out much different than other hedge fund buys, customers will be at the very bottom of whatever totem pole is used.
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06-06-2019, 04:04 PM | #4 |
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This is not good news. Hedge funds like to buy up struggling retailers, load them up with debt from their other businesses and let them go bankrupt taking all the debt down with them. They’re not interested in turning them around and running them as a business. Sears, Toys ‘R’ Us, Sports Authority, Radio Shack, Payless Shoes, and many others were destroyed this way.
https://www.cnn.com/2018/10/16/inves...ity/index.html |
06-06-2019, 04:44 PM | #5 |
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Yep. Hedge fund = shut it down and sell the real estate.
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06-06-2019, 05:26 PM | #6 |
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06-06-2019, 06:08 PM | #7 |
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Elliott Management bought Waterstones Booksellers last year.
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06-06-2019, 06:48 PM | #8 | |||||
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Yup.
From the WSJ: Quote:
https://www.theguardian.com/books/20...rned-to-profit Quote:
He even tried renaming individual stores with different local names, to see if the Waterstones name might be a liability. https://www.theguardian.com/books/sh...e_iOSApp_Other Quote:
https://www.newstatesman.com/microsi...in-s-bookshops Quote:
Quote:
https://www.marketwatch.com/story/el...06?mod=hp_econ https://finance.yahoo.com/video/barn...200740516.html This could be good for B&M pbook buyers. . . . On the other hand, Daunt is no fan of ebooks. At least in the UK. https://the-digital-reader.com/2012/...ibrary-ebooks/ Last edited by fjtorres; 06-06-2019 at 07:26 PM. |
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06-06-2019, 07:26 PM | #9 |
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I wonder what the temperature is in zip code 48169? (That'd be the zip code Hell, Michigan is in, to explain the joke)
And to be serious, B&N seems like there's a good chance its market cap is less than its assets. Last edited by binaryhermit; 06-06-2019 at 07:31 PM. |
06-06-2019, 08:29 PM | #10 | |
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Quote:
Riggio might still find a way to torpedo the deal. Or Elliot might run away screaming like W.H. Smith. But it does look like a cold front might be moving in to at least the fourth circle. Anyway, their backend infrastructure is almost certainly worth more than their stock price. It's the rest of the business that is tanking. Last edited by fjtorres; 06-06-2019 at 08:34 PM. |
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06-06-2019, 08:54 PM | #11 |
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Not all hedge funds buy to bankrupt a business. Some will buy with the idea that they can revive the business and then sell it at a profit at some point in the future. It will be interesting to see how this all plays out.
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06-07-2019, 01:02 AM | #12 |
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As a long-time B&N customer, I hope the news is both true and positive rather than negative. I have long believed that Riggio is a major reason why B&N has not been more successful.
I have a contact in the main B&N office and for several years I have advised the contact that B&N will ultimately lose my preorder business if it does not institute a lowest price guarantee for preorders. I told the contact that by lowest price I mean lowest price that B&N offered the book at, not a price equal to or lower than what Amazon or some other competitor offered the book at. At B&N, if you preorder a book, whatever price you preorder at is the price you pay, even if 3 days later B&N offers a lower preorder price and 7 days after that a higher preorder price. That means one has to constantly monitor B&N pricing and cancel and reenter preorders. Although many of my suggestions were listened to, the preorder guarantee was not. Just in the past few weeks I wrote my contact again about the preorder guarantee and advised that as of January 1, I had begun preordering some titles from Amazon and that as of the writing of my message, I had already preordered more than 70 hardcovers at Amazon. Those were 70 book sales that B&N lost. I still preorder books at B&N, but they are only editions I cannot get at Amazon. (I have been buying already published books at B&N, as well.) Perhaps if the new owners are serious about keeping B&N going, they will change this no-guarantee policy. Riggio certainly has been unreceptive. If not, I'll just keep preordering at Amazon. |
06-07-2019, 09:12 AM | #13 |
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So sad. I haven't been to a book store in many years...but it's still sad.
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06-07-2019, 10:27 AM | #14 |
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06-07-2019, 10:32 AM | #15 |
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