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Will Microsoft buy Barnes & Noble (BKS +5.8%)? The bookstore chain shoots higher in early...
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Monday, March 4, 9:49 AM ETWill Microsoft buy Barnes & Noble (BKS +5.8%)? The bookstore chain shoots higher in early trading after a Barron's article pitches the case that the retail business is worth $19 a share alone. The crux of the argument is that Microsoft (MSFT -0.2%) would be smart to buy the company to jumpstart its retail business and set up a store-within-a-store concept to boost sales of its tablets.
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I'm not saying it's a good move, more information would be need... execution is important, and as noted yesterday on SA 90% of the B*N stores are still profitable.
Buying out their Nook division makes some sense (and making it a default program in all Windows 8 machines the way that Bing and Internet Explorer are), but the actual book/toy store end of it isn't exactly relevant to them.
1) The retail stores - MS can build their Windows Stores upon the B&N stores.
2) Content
I think it's an interesting idea, but I don't think buying outright is going to work. Book retail is a dying business. When it comes to content, B&N only known for books not so much entertainment content.
My opinion, not a good idea MS! There are better ways to invest your cash.