As noted in our first piece, the media and interwebs are full of all kinds of notions on what happens next with Barnes & Noble. To be clear, this piece is entirely speculation, but we do have our reasons. First let’s cross of some of the companies that won’t be bidding: AmazonA tech company and etailer that trades at a PE of over 50 would enrage investors and shed billions of dollars of market cap by picking up an outfit like Barnes & Noble. Plus it would give them undeniable sales tax nexus in all 50 states, producing what many […]
Finance
Barnes & Noble Board Agrees to Look at “Strategic Alternatives” As Market Decides the Company Is In Play
With its stock trading persistently low, Barnes & Noble’s board of directors has effectively given in to the pressure brought by activist shareholder Ron Burkle and larger market forces following their recent earnings disappointment in announcing that it “intends to evaluate strategic alternatives, including a possible sale of the company, in order to increase stockholder value.” The board concluded that the company’s shares–battered in the past month in particular–“are now significantly undervalued.” The plain-English translation is that the company has agreed to put itself in play conceptually, and on Wall Street the line between concept and reality here is infinitesimally […]
Skyhorse Confirms Acquisition of Arcade Assets
Skyhorse Publishing has officially announced their purchase of “all assets of Arcade Publishing,” which has been in bankruptcy since the death of co-founder Richard Seaver last year. They note that Skyhorse president Tony Lyons “was passionate about owning the titles acquired by Dick Seaver, a publishing legend who devoted his life to new literary voices.” He says in the announcement, “We believe that the timeless quality of many of the books on the list fits nicely into the Skyhorse model of finding great books; producing well-priced, handsome packages; finding the customers who will read and love them; and keeping them […]
Amazon Earnings Fall Short and Market Hits Shares
Amazon reported second quarter sales after the close of the market yesterday of $6.54 billion, up 41% from a year ago and on target with expectations of $6.5 billion. But net income of $207 million, or 45 cents a share, was well short of analysts’ expectations and below the low end of the company’s own guidance. The consensus expectation was for 54 cents a share, and that’s after Amazon warned of lower earnings in April when they reported first quarter sales. Wall Street had anticipated earnings of $322 million before the April reset; and Amazon told investors to look for […]
Briefs: Quick Ruling Possible in Burkle/B&N Trial; Figuring Out E-Book Bestseller Lists; and More
After final arguments in the trial stemming from Ron Burkle’s complaint about B&N’s poison pill measures, a Delaware court judge said B&N “may have responded in a reasonable manner last year”, and that he would try to issue a ruling quickly. He didn’t say how soon that would be and acknowledged his ruling may be appealed to the Delaware Supreme Court.AP The New York Times Book Review is now available as a standalone subscription for the Kindle. In related news, TIME’s Andrea Sachs wonders when e-books will be incorporated into the NYT and other bestseller lists, the way it now […]
Now, About that Amazon Earnings Preview
Amazon has a lot to live up to when it reports those Q2 numbers on Thursday: over the last 4 quarters, the company’s reported eps exceeded the market’s consensus estimates by margins in the range of 2.24% and 37.2%. Maybe that’s why investors seem to be just a little more cautious with their expectations this time around, as iStockAnalyst reports, and why Barron’s says “Morgan Stanley’s derivatives strategists are advising clients to bullishly trade ahead of [the earnings report]”. Q2 estimates now range “from a low of $0.44 to a high of $0.76 per share, compared to a consensus estimate […]