Barnes & Noble works with e-book edge
Barnes & Noble has been making moves to avoid a potential hostile takeover. But with sales slipping, many believe the book industry belongs on the endangered list. But Jeff Tyler reports there's still some value in e-books.
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Steve Chiotakis: Barnes & Noble wants to avoid a potential hostile takeover. So the bookseller’s board has come up with a “poison pill,” protecting the company in case an investor buys 20 percent or more of its stock. And billionaire Ronald Burkle’s almost there. He’s been gobbling up millions of shares. For those on the outside, the question is, with sales of books down, why invest in a dwindling market? Here’s Marketplace’s Jeff Tyler.
Jeff Tyler: Some see book stores as an endangered species — a doomed industry.
David Carnoy: It may be a doomed industry, but at the same time, if you’re one of the top players in a doomed industry, it may not be so bad.
That’s David Carnoy, executive editor at the technology Web site CNET. He says the book retailer has an edge over rivals like Borders because Barnes & Noble has developed its own electronic-book reader.
Carnoy: If they can make this transition to e-books and make it more profitable to produce books, that will certainly help.
It’s helped Amazon, where sales of the Kindle have taken off. Carnoy says consumers want more competition in the e-book market, which is good for Barnes & Noble. Its e-book reader is called the Nook. Shipments have been delayed, but the Nook is expected to be on store shelves in time for the holiday shopping season.
I’m Jeff Tyler for Marketplace.