Taking Company Private To Regain Longevity $BKS
Founder Leonard Riggio has devised a new plan that perhaps will save his business that is currently drowning from the popularity of e-books. He is going to take the company private. Barnes & Noble’s Inc. has been struggling for the past two years, reporting no profits as well as announcing a plan to close 20 stores each year for the next decade, read more details here.
Riggio currently owns 30% of the market share of his company, and plans on buying 100% of it in the near future, taking the company private and off the exchange board. With this move, he hopes to regroup and strengthen sales of Barnes & Nobles both in physical stores and in the virtual market. Their e-book device, The Nook has not performed well since its release because of big competition from Amazon’s Kindle ($AMZN) and Apple’s iPad ($AAPL.) In the near future, instead of concentrating on branding their own hardware, Barnes & Noble’s is looking to make deals with other tablet companies like Samsung and Microsoft to create partnerships and agreements through e-book material, software and services exchanges. This will give Barnes & Noble’s new-found stability in the market and induce some much-needed profits.