Barnes And Noble
Independent bookstores claim that the
acquisition is a "body-blow for the
independent bookselling community"
because there is room for B&N to
gain an unfair advantage over
bookstores. They fear that the chain will receive books,
especially
bestsellers, before or instead of
them. For
instance, if there are a few copies of a best seller on
the shelf and every book
store needs them, who will get the books first?It
does not take a rocket scientist to figure out who is going to get the
books.
In the midst of all the negative criticism, B&N has promised
that
Ingram will continue to sell books to its competitors.The chain vows
not to give B&N "preferential treatment or freeze
out competitors, once
the purchase is approved" by continuing to fill book
orders at the time they
are received. They
are committed to continue business with
Ingram’s current customers, including
independent bookstores, specialty
stores and libraries, in the U.S. and
overseas. Barnes and Noble
knows
that Ingram depends on the competition for profit earnings. Anti-trust
laws do
not permit a business to eliminate the competition by monopolizing a
resource
such as Ingram Book Group. It is
doubtful, that after
all the success of B&N, they will risk being sued if
they try to
monopolize the book industry. The sale will cost Barnes and Noble
$400
million in stock and $200 million in cash.The $400 million in stock will make
Ingram the second largest
shareholder, with Mr. Riggio owning the majority of
the company’s stock. The
news of the deal sent B&N’s shares climbing from
$30.87 to $34.25 on the
New York Stock
Exchange. Investors
have confidence that the already successful
company will increase its earnings,
efficiency and clout within the book
industry.On the other side, B&N’s biggest competitor, Amazon, saw
their
stocks fall a total of $3.94. In conclusion, the purchase of Ingram
Book Group
by Barnes and Noble will allow the latter to gain profits from
their rivals.Currently, Barnes and Noble is finalizing the acquisition of
Ingram.Mr.Riggio is a prime example of an individual that is now a national
icon
after being just a small time businessman.His fulfilled dream of
providing a prominent book supply to students and
the general public, along
with a comfortable social atmosphere, has made him a
true success and
personal role model.