Will Microsoft buy Barnes & Noble (BKS +5.8%)? The bookstore chain shoots higher in early...

Will 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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Comments (8)
  • BlueOkie
    , contributor
    Comments (10644) | Send Message
    Peter Lynch would call this DIWORSIFICATION. Microsoft is not apple nor a book store
    4 Mar 2013, 10:21 AM Reply Like
  • Money Maverick
    , contributor
    Comments (14) | Send Message
    Conceptually this move seems reasonable... but what is Microsoft going to do with the remainder of Barnes & Noble's retail STUFF, and debt, if any (i.e., books et al)… Unless someone corrects me, Microsoft knows NOTHING about how to retail anything other than software to an esoteric customer base and Computer Operating Systems to OEM’s... buying storefronts with all that STUFF is OVERKILL and not a good move... it's like buying an entire Supermarket Chain to sell a new tropical fruit that no other entity has access to, but, you know nothing about Super Markets and/or how to manage them.... Microsoft continues to be distracted by ill-conceived expedient illogical attempts to market High Tech STUFF... in a book store ??? Go figure ! ... Mav
    4 Mar 2013, 10:25 AM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
    You guys are acting like if MSFT bought B&N all the B&N staff, executives would all go away and MSFT would have to start learning all by themselves.


    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.
    4 Mar 2013, 10:49 AM Reply Like
  • alohakona
    , contributor
    Comments (8) | Send Message
    Microsoft has invested in many businesses over the years, such as Apple and Best Buy. I think the buying of Barnes and Noble Bookstores would be a great investment, allowing Microsoft to advertise all of its retail products (computers, software, tablets, phones, and other hardware, along with books - Microsoft Press, magazines, and entertainment), tech/cloud services, and commercial products. The acquisition of B&N would stabilize several MSFT sectors and increase the share price by $2-3. MSFT has sufficient cash to make this transaction happen, and the knowledge to make this a successful outcome. Bold and expressive steps such as this will lead to long term growth.
    4 Mar 2013, 11:50 AM Reply Like
  • Ben Hanson
    , contributor
    Comments (525) | Send Message
    Microsoft has no particular reason to buy BKS proper (at least that I can see). It's buying a lot of debt and moving into an industry that isn't exactly related to what they do.


    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.
    4 Mar 2013, 11:59 AM Reply Like
  • anil92691
    , contributor
    Comments (827) | Send Message
    Microsoft does not need to buy BKS to have a store within a store model. BKS may just do that to gain more sales. Actually Target and WalMart would be open to that idea. They could gain more foot traffic and sales by allocating just 200 square feet dedicated to Microsoft in each of its stores, with two Target or Microsoft employees managing the booths.
    4 Mar 2013, 12:16 PM Reply Like
  • Money Maverick
    , contributor
    Comments (14) | Send Message
    Anil92691... Point made... I agree with your suggestion re 200 sq ft in a Target and/or Walmart... the normal daily foot-traffic in a Target and/or Walmart store is significantlly greater than the foot-traffic of the aggregate annual foot-traffic in a B&N store... a no brain'r... Mav
    4 Mar 2013, 01:10 PM Reply Like
  • lord_ares
    , contributor
    Comments (78) | Send Message
    If MS buying B&N, it's for 2 reasons:


    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.
    4 Mar 2013, 02:35 PM Reply Like
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