The news of Amazon buying Barnes and Noble has been doing the rounds for quite some time now. It is a speculation that has been floating around for years, and yet no definitive answer has been given. Amazon is known to be an aggressive purchaser of businesses, but it has yet to make a move towards Barnes and Noble.
Amazon is the largest online retailer in the world, with an estimated market cap of $1 trillion dollars.
The company has a long history of acquiring businesses, ranging from small independent bookstores to larger companies such as Whole Foods and Zappos. It is no surprise that Amazon may be looking to expand its reach by taking over Barnes and Noble, which is one of the largest booksellers in the United States.
There are several reasons why Amazon may be interested in acquiring Barnes and Noble. For one, it would give Amazon access to an extensive network of physical stores across the country, which could be used to expand its presence in brick-and-mortar retailing.
Additionally, Barnes and Noble’s large customer base could be used to drive more sales on Amazon’s online store. Furthermore, Barnes and Noble’s NOOK e-reader business could provide Amazon with an additional platform through which it can sell its Kindle products.
On the other hand, there are some significant obstacles that need to be overcome before any acquisition can take place. Firstly, there are regulatory concerns that need to be addressed as any merger between two large companies will likely require approval from federal regulators. Secondly, Barnes and Noble may not want to give up control of its business as it was recently acquired by hedge fund Elliott Management Corporation for $476 million.
Conclusion:
It seems that at this time Amazon is not actively pursuing a purchase of Barnes and Noble. There are several practical reasons why this might be the case – regulatory concerns, resistance from B&N management – however it cannot be denied that this would have been a lucrative acquisition for Amazon if they had chosen to pursue it.