Liberty Sees Opportunity For Nook Software On Tablet Devices
24 5월 2011 - 2:17AM
Dow Jones News
John Malone, chairman and controlling shareholder at Liberty
Media Corp. (LCAPA, LINTA, LSTZA), said Monday he believes Google
Inc.'s (GOOG) Android mobile operating system, which powers Barnes
& Noble's (BKS) Nook device, could dominate the e-book market
in terms of unit sales.
Malone and Liberty Chief Executive Greg Maffei signaled that the
potential for the Nook platform to become the e-book application of
choice for consumers on all Android-based tablet devices is a key
reason for the company's bid for the ailing bookstore chain, which
values Barnes & Noble at $1.02 billion.
With Barnes & Noble's retail business in steep decline and
its Nook device playing catch-up with Amazon Inc.'s (AMZN) Kindle,
Liberty's offer of $17 a share for 70% of the book chain surprised
investors--many of whom were betting that Barnes & Noble shares
would continue their slide after the company held a failed auction
for itself while its chief rival, Borders, filed for
bankruptcy.
In his first comments about the deal, Malone was quick to point
out that his interest in steering Liberty into the rapidly
transforming book business is merely a side project in comparison
to the company's other sizeable holdings in the media and ecommerce
sectors.
"Yes, it's a meaningful amount of money, but no, we're not
betting the company on it," Malone said.
He also noted that Amazon's strong lead in the nascent e-book
market could be hampered by the publishing industry's interest in
not allowing one retailer to become too powerful.
"The publishing industry has a vested interested in not allowing
one player to have too strong a hand, and that should play well for
Barnes & Noble," Malone said.
As for the potential of the Nook software business for selling
e-books, Malone compared it to Gillette's success in selling
razors, but he noted the business could be scaled across any
Android device without being limited to those made by any one
company. That said, he stressed his belief that the financial woes
of its chief retail competitor, combined with its strong brand and
store presence, will give the company's physical stores an enduring
role.
"I've been a Barnes & Noble customer myself for many, many
years," Malone said. "The stores will shift around, but there will
be a physical presence for a long, long time to come, and it will
be a profitable presence."
Even if e-books swamp the market for physical books as many
observers expect, Maffei said Barnes & Noble stores could
continue to have similar role to Apple Inc.'s (AAPL) stores, which
have been successful in selling the company's popular devices
despite the digital nature of the company and its customers.
Barnes & Noble is expected to release a new version of its
Nook device this week. Maffei noted the company has the largest
selection in the e-book space, and that the Nook already has
captured an estimated 25% of the e-book market--an impressive
figure that has been met with skepticism from observers who believe
the company's actual market share is smaller.
"It's an estimate," Maffei said. "We believe they've captured
meaningful share."
Maffei said it's likely that Liberty would spend less than $500
million in cash to complete the transaction if a deal is done, but
that would depend on conditions in financial markets at the time
the company seeks financing.
Malone said he expects to resolve negotiations with Barnes &
Noble over Liberty's offer in a matter of months, if not weeks.
"We're coming in after a failed auction to execute what the
board has sought," Malone said. "The issue is the price or whether
there are other bidders who were stimulated by our bid to come in
with a higher price."
-By Nat Worden, Dow Jones Newswires; 212-416-2472;
nat.worden@dowjones.com
Liberty Media Corp. - Liberty Starz Class B Common Stock (MM) (NASDAQ:LSTZB)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Liberty Media Corp. - Liberty Starz Class B Common Stock (MM) (NASDAQ:LSTZB)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024