Barnes & Noble has been in the news lately because of the buyout offer from John Malone circling around. Within few days of John Malone’s offer, Ron Burkle, a major shareholder in BN announced that he grabbed another 603,000 shares of BN at $18.49, a price that already reflects the price surge after the Malone offer. So why should Microsoft enter the bidding war?

1. Barnes & Noble has over 700 stores worldwide and over 600 college bookstores. These books stores are a great showroom for Microsoft’s array of software, gaming & partner made hardware products. Some of these stores may not be ideally located for Microsoft’s store strategy, and in those cases, Microsoft should just sell the location. Large stores, especially in upscale downtown locations or inside major shopping malls should be attractive to Microsoft.

2. Barnes & Noble, just yesterday, announced the new Nook ebook reader. As stated earlier, it is very promising new product. Even the “older” color screen version of the nook has been a hit product. Granted, the color nook runs Android. It’ll not be hard for Microsoft ride the success of nook while preparing to transition the product to something that runs a version of Windows CE kernel.

3. Barnes & Noble sells traditional paper books and, increasingly, the electronic version. Microsoft as a technology company is investing heavily in its online division to compete with Google. This is another way for Microsoft to ensure that they make their presence felt not just in search and related services, but creating valuable information content in its cloud services.

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2 Thoughts on “Why Microsoft should buy Barnes & Noble!

  1. eReaders is a market on it’s own,you could buy an ebook as a pdf and play it on any u00a0reader , most of these stores are unnecessary when libraries could pretty well do sales. Bookstores are a duplicate infrastructure that will disappear! The point is america was in a post world war economic bubble and that bubble burst,so america has to think of lean engineering and the models followed by any of these retailers of having specialized stores is not sustainable. You don’t build your own railroad to distribute your goods.

  2. Pingback: Microsoft Took My Advice And Did Even Better | View From The Peak

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