Apple Considering Barnes & Noble Acquisition?

[KingCrimson]

I reccon Apple could buy all 4 major record labels and several major book publishers with the money they have in the bank... and they would still have change for a warchest

Antitrust regulations would not allow that to happen. Why do you think the DOJ came down so hard on MSFT 10 years ago? They attempted to use their cash and leverage to shut down competition...

 

[LagunaSol]

It's time for Apple to start throwing their cash around. They could buy Amazon for $20 billion and have $56 billion left over!

Too bad Amazon's current market cap is $100 billion.

 

[azurehi]

Apple Eat World...Be afraid, be Very afraid

 

[Kauai]

They better not try anything with my wonderful Nook if this really does happen.

 

[(L)]

Apparently you're so amazed that you proceeded to do essentially the same thing. The MacRumors original post indicated, "We're a little skeptical about the whole thing and mention it primarily to encourage conversation." Why should it be a surprise that (full disclosure) investors would express concerns over how AAPL funds are used?

You pulled together three sentences that don't connect to each other or anything else, so I feel like I've had a conversation with a paranoid schizophrenic.

IF you are trying to defend the practice of jumping to conclusions based on being able to dream up extreme counter-scenarios, consider the following. There are people here saying that this rumor means Apple trying to convert every B&N into a full-fledged Apple Store, etc. I'm not saying the rumor isn't unlikely; I'm just saying it's inane to twist it into something impossible in an attempt to express doubt. Skepticism -- you're doing it wrong.

 

[EbookReader]

http://finance.yahoo.com/q/ks?s=BKS+Key+Statistics

Market Cap (intraday)5: 757.36M
Enterprise Value (Apr 25, 2012)3: 1.00B




The attraction is in the Nook ebook business.

The future of publishing is this

author - digital book store - readers

cutting out the middleman of publishers. Apple could compete head to head with Amazon. The Nook is the best bet (30% vs. Amazon's 60%).



Barnes and Noble will be bought because of the valuable Nook. The most likely buyers are tech companies with a lot of cash to compete with Amazon.

Apple
Google
Microsoft
Facebook
maybe even Samsung or Sony


The physical stores will go the way of big chain music stores like Virgin, Towers etc...

----------

As ebook grow (around 30% of the book market right now), this will be more common

Traditional: 17.5% royalties
New Publishing companies that offer editors/covers/marketing: 35% royalties (**Amazon Publishing for example)
Self-publishing: 70% royalties

Amazon Publishing currently has 236 authors who signed for at least 1 book (see the link). This list grows each passing day
http://amazonpublishingauthors.blogspot.com/



If Apple buys Nook, I could see Apple doing the same thing.



Authors benefit: 35% royalties instead of 17.5%
Readers benefit: cheaper ebooks and faster to market

 

[EbookReader]

Market Cap (intraday)5: 757.36M
Enterprise Value (Apr 25, 2012)3: 1.00B

http://news.cnet.com/8301-10805_3-5...le-microsoft-ink-strategic-deal-on-e-reading/

The companies announced today that Microsoft has invested $300 million into a new Barnes & Noble subsidiary, known as Newco until the company can come up with a name. The $300 million investment will give Microsoft 17.6 percent equity stake in the firm. Barnes & Noble, which assumed a $1.7 billion valuation on the subsidiary, will retain 82.4 percent ownership.
Newco will combine Barnes & Noble's digital and College businesses, meaning the retailer's Nook operation and its Nook Study software for students and educators will be a part of the operation.

Main company is worth $1 billion but its subsidiary is valued at $1.7 billion. (where does the $700 million go? lol)

B&N stock will RISE a lot today.