For many reasons Amazon is doing well and Barnes & Noble is under pressure and without a change may go the way of Borders, bankrupt.
Most people have heard the story or been the subject themselves of browsing in a Barnes & Noble brick and mortar to find and review a product and then, having compared costs, ordered the product using Amazon.
Or have you witnessed the "customers" that enjoy casually sitting and reading in the B&N store rather than purchasing the product and reading it elsewhere.
As stated, there are many reasons for the bifurcation in these companies performances.
There are many reasons to think B&N will have trouble surviving without a change. However, one reason to consider investing in BKS is ironically the company that is pressuring its sales, Amazon.
Amazon is under pressure from cash strapped states to implement a sales tax.
One could reasonably suspect that this sales tax drive will eventually take place. At that point, I think Amazon would seriously weigh the pros and cons of establishing a physical presence, brick & mortars. Barnes and Noble would be an attractive way of establishing this physical presence; Amazon may buy B&N.
Amazon has established customers across a broad range of products and is becoming more entwined with its customers daily lives. What better way to promote itself, provide superior customer interaction, and be a resource to the community as a social gathering spot than by a physical store presence?
In addition, Stifel Nicolaus & Co. analyst David Schick says a Barnes and Noble purchase would bring Amazon B&N's "competitive advantage... in its relationship with publishers and heavy readers, ... relationships...strengthened with Borders going out of business."
Amazon's focus on online media could gain tremendous boost utilizing B&N's existing college presence.
AMZN may buy BKS and figuring out when and at what price may be worth thinking about.
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