By now we’re all aware of the battle raging between Amazon.com (AMZN) and Hachette over the pricing of eBooks. While the consumer is certainly the loser as the two big corporations go head to head, there’s likely a winner from the battle royale as well–Barnes & Noble (BKS).
Associated Press Maxim’s John Tinker and Kevin Rippey explain why Amazon.com’s standoff with Hachette Books is good news for Barnes & Noble:
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Amazon’s standoff with suppliers is an opportunity for Barnes & Noble. Currently, Amazon.com is not accepting orders for titles from Hachette authors, including J.K. Rowling and Michael Connelly, following continued disputes on e-book pricing. In addition, they are not accepting preorders for key Warner Bros. (TWX – $68.92 – NR) titles, such as The Lego Movie, in a separate supplier dispute. The standoffs highlight Barnes & Noble’s value to publishers, as it remains the only alternative book outlet to Amazon.com, and is critical in both the sale and marketing of their books. It is worth noting that, this week, Hilary Clinton staged the launch of her book tour at Barnes & Noble’s Union Square store, although the former first lady and potential presidential candidate did not draw as many fans as the Jonas Brothers' or Justin Beiber’s book signing appearances!
And there’s more to the bull case for Barnes & Noble than Amazon’s shenanigans, Earlier this month, Barnes & Noble reached a deal with Samsung to produce the Nook tablet, which should reduce losses in that area of the business–and allow Barnes to consider a spinoff of its college business.
Shares of Barnes & Noble have gained 0.6% to $20.17 at 12:16 p.m., while Amazon.com has dropped 1.9% to $328.90.
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