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 Ingrams 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 companys stock. The news of the deal sent B&Ns 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&Ns 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.
