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Why Amazon Won't Acquire Barnes and Noble

One of the concerns that I’ve had about the Barnes and Noble Nook and eReader apps since launch is that buyers are investing a considerable amount to build an electronic library whose life expectancy has to be tied to the life expectancy of a company whose financial future is far from rose. The most recent B&N; news is that its Board of Directors has served notice that the company is, basically, up for sale to the highest bidder. This has led to a great deal of speculation about who might buy a controlling interest in BKS shares. Some have even speculated that Amazon might be interested in acquiring B&N;, but it won’t happen. As Michael Cader’s subscription-only Publisher’s Marketplace pointed out yesterday, such an acquisition would saddle Amazon with “undeniable sales tax nexus in all 50 states, producing what many customers would see as an automatic price increase. And it would likely bring antitrust scrutiny (and require disclosure of data) on both the physical book and ebook sides.”

Some bloggers have been complaining for a while now about Amazon’s refusal to provide comprehensive metrics on its Kindle hardware and content sales, but the company would be silly to disclose information that provides it with a competitive business advantage unless the array of disclosure pressures were to expand and intensify significantly.

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