Why in the world would Apple want to do something this stupid? Companies like B&N have ticking timebombs strapped to their bodies, they won't last past the 2016 election. With 700 stores of varying quality, the company is nothing but a tangled mess of liabilities. Apple is doing plenty fine on their own, building their own business well enough and slowly putting companies like this out of business. No need to help them along by buying them out.
Wall Street is so eager to have Apple spend their 70 billion on BS aquisitions that they forget what a rough ride the company had during the 90's. You can be dead sure that Apple doesn't forget. Hoarding their cash means they can ride out whatever changes may come, and gives them enormous cash leverage to secure components, which is far more valuable to their business in ensuring they stay on top than buying some retailer. Really glad these analysts and wall street firms aren't running the company.
Folks: BGR published the story at 11:20 this morning. Check Google Finance for Barnes and Noble's stock (BKS) at 11:20 this morning. There's your explanation for this utterly ridiculous rumor.
Agreed, someone(s) is going to get a closer look from the SEC (and I"m not talking football either) for this one. Quite the jump in volume for those few seconds.
Brian Marshall is correct that the obvious asset of Barnes and Noble that might be interesting to Apple would be retail space, but Apple have been very particular about the spaces they choose. It's not clear how many of Barnes and Noble's retail spaces would be of interest to Apple, but certainly some. However, buying a company just to obtain its retail leases doesn't make much sense to me. Apple would be immediately responsible for all of Barnes and Noble's retail spaces including those which Apple wouldn't want.
Another possibility is that Barnes and Noble might have some patents related to the Nook which might be of some value to Apple.
In either case or in both cases, I think it would be better for Apple to just buy what they want from Barnes and Noble rather than buy the whole company. Apple could buy all of Barnes and Noble's patent portfolio (assuming they have one) with the deal allowing B&N non-exclusive license rights. Similarly, Apple could take over selected leases.
But one would have to ask what patents B&N could possibly hold that Apple would need. It's like a rocket scientist buying two sticks to rub together from a caveman.
This is the part of the rumor that I thought was more important: (from MacRumors)
"This unproven source also said that iTunes 11 would be released in September along with iOS 5 and iCloud, and will support reading iBooks on computers as well as textbook purchases and rentals."
The Textbooks, I think, would (should) be a big deal, with or without B&N.
This is the part of the rumor that I thought was more important: (from MacRumors)
"This unproven source also said that iTunes 11 would be released in September along with iOS 5 and iCloud, and will support reading iBooks on computers as well as textbook purchases and rentals."
The Textbooks, I think, would (should) be a big deal, with or without B&N.
I hadn't spotted that, iBooks on the Mac would go a long way towards convincing me that Apple is serious about the book business.
At least at first blush I don't see apple needing to buy all of that real estate in order to get their target audience to buy ebooks. Doesn't make much sense to me.
Exactly. They don't need the stores in the least bit. Maybe 5-15 of 700 might be nice. Apple wouldn't be buying the real-estate either. They would be assuming the leases which run for years. To break those leases and close stores would be extremely costly. Plus, Apple hates managing phyisical inventory for more than a small number of SKUs
Exactly. They don't need the stores in the least bit. Maybe 5-15 of 700 might be nice. Apple wouldn't be buying the real-estate either. They would be assuming the leases which run for years. To break those leases and close stores would be extremely costly. Plus, Apple hates managing phyisical inventory for more than a small number of SKUs
The stores aren't as useless as you might think, because bookstores still shift significant amounts of content, and the more content you shift the better your leverage with publishers. Dead-tree will not die as fast as CD did, because it still provides a distinctly different and sometimes better experience - so whether online or B&M, bookstores will survive for years yet.
Bookstores are definitely suffering, and will continue to decline, but that is priced into the shares. The real question is, how important does Apple think iBooks is to the iPad.
Agreed, someone(s) is going to get a closer look from the SEC (and I"m not talking football either) for this one. Quite the jump in volume for those few seconds.
Maybe the Boy Genius will end up as the Federal Penitentiary Genius.
The blende of books, a coffee shop and a Mac store in one location would be very nice, even though I'm not holding my breath. The lack of a nice coffee shop in Apple stores has always been a miss IMHO although with the high rent areas Apple uses I understand why. The lower rent areas the B&N stores are in would be perfect for the blend (pun intended) ... imagine the wafting aroma of java while perusing a new MacBookAir ...
The additional space could also lead to larger and more training areas, complete with danish and coffee breaks.
Apple could buy their way onto 600 college campuses in America. Want to start pushing e-books for college? This would be a great way to do it.
Whether or not its worth $1.5B is another question.
Yes, this is the only way in which I could imagine it making sense. What if every college bookstore were to suddenly also become an Apple Store? Add on to that possibly taking over B&N's Nook business, with an updated Touch Nook now running some version of iOS.
Comments
Wall Street is so eager to have Apple spend their 70 billion on BS aquisitions that they forget what a rough ride the company had during the 90's. You can be dead sure that Apple doesn't forget. Hoarding their cash means they can ride out whatever changes may come, and gives them enormous cash leverage to secure components, which is far more valuable to their business in ensuring they stay on top than buying some retailer. Really glad these analysts and wall street firms aren't running the company.
This rumor is one of the dumbest of the week.
Folks: BGR published the story at 11:20 this morning. Check Google Finance for Barnes and Noble's stock (BKS) at 11:20 this morning. There's your explanation for this utterly ridiculous rumor.
Agreed, someone(s) is going to get a closer look from the SEC (and I"m not talking football either) for this one. Quite the jump in volume for those few seconds.
Brian Marshall is correct that the obvious asset of Barnes and Noble that might be interesting to Apple would be retail space, but Apple have been very particular about the spaces they choose. It's not clear how many of Barnes and Noble's retail spaces would be of interest to Apple, but certainly some. However, buying a company just to obtain its retail leases doesn't make much sense to me. Apple would be immediately responsible for all of Barnes and Noble's retail spaces including those which Apple wouldn't want.
Another possibility is that Barnes and Noble might have some patents related to the Nook which might be of some value to Apple.
In either case or in both cases, I think it would be better for Apple to just buy what they want from Barnes and Noble rather than buy the whole company. Apple could buy all of Barnes and Noble's patent portfolio (assuming they have one) with the deal allowing B&N non-exclusive license rights. Similarly, Apple could take over selected leases.
But one would have to ask what patents B&N could possibly hold that Apple would need. It's like a rocket scientist buying two sticks to rub together from a caveman.
"This unproven source also said that iTunes 11 would be released in September along with iOS 5 and iCloud, and will support reading iBooks on computers as well as textbook purchases and rentals."
The Textbooks, I think, would (should) be a big deal, with or without B&N.
This is the part of the rumor that I thought was more important: (from MacRumors)
"This unproven source also said that iTunes 11 would be released in September along with iOS 5 and iCloud, and will support reading iBooks on computers as well as textbook purchases and rentals."
The Textbooks, I think, would (should) be a big deal, with or without B&N.
I hadn't spotted that, iBooks on the Mac would go a long way towards convincing me that Apple is serious about the book business.
At least at first blush I don't see apple needing to buy all of that real estate in order to get their target audience to buy ebooks. Doesn't make much sense to me.
Exactly. They don't need the stores in the least bit. Maybe 5-15 of 700 might be nice. Apple wouldn't be buying the real-estate either. They would be assuming the leases which run for years. To break those leases and close stores would be extremely costly. Plus, Apple hates managing phyisical inventory for more than a small number of SKUs
Exactly. They don't need the stores in the least bit. Maybe 5-15 of 700 might be nice. Apple wouldn't be buying the real-estate either. They would be assuming the leases which run for years. To break those leases and close stores would be extremely costly. Plus, Apple hates managing phyisical inventory for more than a small number of SKUs
The stores aren't as useless as you might think, because bookstores still shift significant amounts of content, and the more content you shift the better your leverage with publishers. Dead-tree will not die as fast as CD did, because it still provides a distinctly different and sometimes better experience - so whether online or B&M, bookstores will survive for years yet.
Bookstores are definitely suffering, and will continue to decline, but that is priced into the shares. The real question is, how important does Apple think iBooks is to the iPad.
Agreed, someone(s) is going to get a closer look from the SEC (and I"m not talking football either) for this one. Quite the jump in volume for those few seconds.
Maybe the Boy Genius will end up as the Federal Penitentiary Genius.
This rumor is one of the dumbest of the week.
Yep. They are buying Borders -- way cheaper
The additional space could also lead to larger and more training areas, complete with danish and coffee breaks.
B&N also has a ton of college bookstores.
Apple could buy their way onto 600 college campuses in America. Want to start pushing e-books for college? This would be a great way to do it.
Whether or not its worth $1.5B is another question.
Yes, this is the only way in which I could imagine it making sense. What if every college bookstore were to suddenly also become an Apple Store? Add on to that possibly taking over B&N's Nook business, with an updated Touch Nook now running some version of iOS.
I still wouldn't bet on it.