Rare Book Monthly

Articles - June - 2011 Issue

Barnes & Noble Receives a Takeover Offer, and the Reason May Surprise You

Colornook

Barnes & Noble got out fast with its color Nook.

America's largest chain of bookstores received a major, and perhaps surprisingly strong purchase offer recently. Liberty Media, owner of large shares of Sirius Satellite Radio and QVC Shopping Network among others, made an offer to buy 70% of Barnes & Noble in a deal that values the company at $1 billion. Some had questioned whether the leading bricks and mortar chain could survive at all competing against Amazon.com and others in this quickly evolving world of internet sales and electronic readers. The printed book, as opposed to the digital one, is under enormous pressure, and many believe that though it may not disappear altogether, it will become a comparatively small and shrinking part of the book business. That's not a great prospect for a chain of stores with millions of printed books on their shelves.

 

The $1 billion offer, a 20% premium over Barnes & Noble's stock price at the time, may seem particularly surprising given their main bricks and mortar rival, Borders, recently filed for bankruptcy. Borders filed earlier this year, and continues to show substantial losses. On the other hand, Barnes & Noble actually saw sales increase at its stores during the first quarter of the year, the first time that has happened since 2007. Does Liberty believe there still is life in their business model? Despite what their offer might seem to imply, this is not so clear at all. Some analysts believe the offer has more to do with a hope on Liberty's part about where Barnes & Noble might go, as opposed to where it has been.

 

Several commentators have speculated that Liberty's offer has little to do with Barnes & Noble's stores, and everything to do with its Nook electronic reader and its online digital bookstore. While Amazon with its Kindle e-reader reportedly controls around 65% of the market, Barnes & Noble has made substantial inroads with its Nook competitor. Reports indicate the Nook now holds around 25% of the market, a good and growing share of what appears to be a rapidly expanding market.

 

While at first seeming to be hopelessly behind, B&N made some smart moves with its Nook to gain substantial market share. It enabled the Nook to obtain electronic books from everywhere. Kindle could only accept books sold by Amazon. B&N enabled the Nook to accept books borrowed without cost from libraries. Amazon, finally seeing B&N's advantage, is now belatedly opening up Kindles to library books. B&N offered Nooks at cheaper prices while Amazon attempted to use its market dominance to maintain higher prices longer. B&N then used its stores to allow people to try out and learn how to use Nooks before buying, something the store-less Amazon could not offer. For a company that has suffered badly on a competitive basis for the past decade, Barnes & Noble actually made some fairly smart moves.

 

In a recent story on the Bloomberg website, Value Investment Principals' analyst Sandy Mehta is quoted as saying, "I think this move is about people accessing books online. The bricks and mortar will go by the wayside." A recent article in the New York Times answered the question what Liberty sees in B&N by saying, "It’s the Nook, Barnes & Noble’s e-book reader." If the analysts have it right, Barnes & Noble's salvation may be that it entered, late but smartly, the digital era, not because it is the largest bricks and mortar bookseller with shelves lined with printed books.

 

While Liberty has made an offer, it is not yet known whether B&N management will accept. B&N officially offered itself up for sale a few months ago to fend off a takeover attempt by dissident shareholders. However, some analysts have speculated that B&N management will demand a higher price, and whether Liberty is willing to go high enough to satisfy them remains to be seen. Also, Liberty's offer is contingent on B&N founder and 30% shareholder Leonard Riggio maintaining his share and retaining a management role with the company.

 

Rare Book Monthly

  • <b>Bonhams, Jun 13 results:</b> Darwin, Charles. <i>On the Origin of Species.</i> Presentation Copy. Sold for $500,075.
    <b>Bonhams, Jun 13 results:</b> Darwin, Charles. Autograph Letter Signed, 3 pp, negotiating the 2nd American edition with Appleton. Sold for $21,325.
    <b>Bonhams, Jun 13 results:</b> Hemingway, Ernest. Autograph Letter Signed, 8 pp, Paris, 1924, to his father discussing Bullfighting, Stories, and his new baby. Sold for $25,075.
    <b>Bonhams, Jun 13 results:</b> Shakespeare, William. <i>Corialanus.</i> London, 1623. 1st printing [Extracted from the First Folio]. Sold for $50,075.
    <b>Bonhams, Jun 13 results:</b> Swift, Jonathan. <i>Gulliver's Travels.</i> London, 1726. 1st edition, Teerink's A edition, fine, large copy. Sold for $21,325.
    <b>Bonhams, Jun 13 results:</b> Fitzroy, Robert. Autograph Letter Signed to agent Thomas Stilwell, informing him of the progress of H.M.S. Beagle. Sold for $17,575.
    <center><b>Bonhams<br> Property from the Collection of Nicole and William R. Keck II</b>
    <b>Bonhams, Jun 13 results:</b> Shakespeare, William. <i>Sonnets.</i> 1901. 2 volumes. Printed on vellum and illuminated by Ross Turner, bound by Trautz-Bauzonnet. Sold for $13,825.
    <b>Bonhams, Jun 13 results:</b> Beardsley, Aubrey. <i>The Birth, Life, and Acts of King Arthur.</i> 1893-94. 2 volumes. Contemporary painted vellum gilt by Chivers. Sold for $5,325.
    <b>Bonhams, Jun 13 results:</b> Assisi, St. Francis. <i>The Canticle of Brother Sun.</i> Illuminated on vellum, for the Grolier Society. Sold for $7,575.
    <b>Bonhams, Jun 13 results:</b> Rackham, Arthur. <i>Peter Pan in Kensington Gardens.</i> 1/500 copies signed by Rackham. Sold for $4,825.
    <b>Bonhams, Jun 13 results:</b> Proust, Marcel. <i>Du coté de chez Swann.</i> 1st edition, 1st issue. Inscribed by Proust. Sold for $8,825.
  • <center><b>Dominic Winter Auctioneers<br>The Library and Picture Collection of the late Martin Woolf Orskey<br>June 26</b>
    <b>Dominic Winter Auctioneers<br>June 26:</b> Book of Hours. Illuminated manuscript, Flanders or northern France, c. 1450. With 12 full-page illuminated miniatures. £10,000 to £15,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Zahrawi, Abu’-Qasim, al- (c. 936-1013). <i>Albucasis chirurgicorum omnium,</i> Strasbourg, 1532. The first comprehensive illustrated treatise on surgery. £3,000 to £5,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Milles, Thomas. <i>The Custumers Alphabet and Primer,</i> 1608. Gilt supralibros of 17th-century English bibliophile Edward Gwynn. £2,000 to £3,000
    <center><b>Dominic Winter Auctioneers<br>The Library and Picture Collection of the late Martin Woolf Orskey<br>June 26</b>
    <b>Dominic Winter Auctioneers<br>June 26:</b> Guillemeau, Jacques. <i>Child-Birth or, the Happy Deliverie of Women,</i> 1st edition in English, 1612. The second midwifery manual printed in English. £1,500 to £2,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Rabisha, William. <i>The Whole Body of Cookery Dissected,</i> 1st edition, 1661. Rare. Five copies in libraries. £2,000 to £3,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Royal binding. <i>An Abridgment of the English Military Discipline,</i> 1678. Contemporary red goatskin gilt by Samuel Mearne for Charles II (1630-1865). £1,500 to £2,000
    <center><b>Dominic Winter Auctioneers<br>The Library and Picture Collection of the late Martin Woolf Orskey<br>June 26</b>
    <b>Dominic Winter Auctioneers<br>June 26:</b> Pallavicino, Ferrante. <i>The Whores Rhetorick,</i> 1st edition in English, 1683. Rare anti-Jesuit satire. £2,000 to £3,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Swift, Jonathan. <i>The Benefit of Farting,</i> 1st London edition, 1722. Teerink 19. £2,000 to £3,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Edwards, George. <i>Natural History of Uncommon Birds</i> [and] <i>Gleanings of Natural History,</i> 7 volumes, 1743-64. Contemporary tree calf, 362 hand-coloured engraved plates. £8,000 to £12,000
    <center><b>Dominic Winter Auctioneers<br>The Library and Picture Collection of the late Martin Woolf Orskey<br>June 26</b>
    <b>Dominic Winter Auctioneers<br>June 26:</b> Campbell, Patrick. <i>Travels in the Interior Inhabited Parts of North America,</i> 1st edition, 1793. Howes C101; Sabin 10264. Uncut in original boards. £5,000 to £8,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Hearne, Samuel. <i>A Journey from Prince of Wales's Fort in Hudson's Bay, to the Northern Ocean,</i> 1st edition, 1795. Sabin 31181. Large-paper copy. £2,000 to £3,000
    <b>Dominic Winter Auctioneers<br>June 26:</b> Edgeworth, Maria. <i>The Match Girl, A Novel,</i> 1808. £1,000 to £1,500
  • <b>Swann Auction Galleries:</b> Ian Fleming, <i>Goldfinger,</i> first edition, inscribed to Sir Henry Cotton, MBE, London, 1959. Sold for $25,000.
    <b>Swann Auction Galleries:</b> Joseph Brant, Mohawk Chief, ALS, writing after pledging support to King George III against American rebels, 1776. Sold for a record $35,000.
    <b>Swann Auction Galleries:</b> Sonia Delaunay, <i>Ses Peintures</i> . . ., 20 pochoir plates, Paris, 1925. Sold for a record $13,750.
    <b>Swann Auction Galleries:</b> Diana, Princess of Wales, 6 autograph letters signed to British <i>Vogue</i> editor, 1989-92. Sold for $10,400.
    <b>Swann Auction Galleries:</b> Alexander Hamilton, ALS, as Secretary of the Treasury covering costs of the new U.S. Mint, 1793. Sold for $12,500.
    <b>Swann Auction Galleries:</b> Benjamin Graham & David L. Dodd, <i>Security Analysis,</i> first edition, inscribed by Graham to a Wall Street trader, NY, 1934. Sold for $20,000.
    <b>Swann Auction Galleries:</b> George Barbier & François-Louis Schmied, <i>Personnages de Comédie,</i> Paris, 1922. Sold for $9,375.
    <b>Swann Auction Galleries:</b> Alphonse Mucha, <i>Ilsée, Princesse de Tripoli,</i> Paris, 1897. Sold for a record $13,000.
    <b>Swann Auction Galleries:</b> Ralph Waldo Emerson, <i>The Dial,</i> first edition of the reconstituted issue, Emerson’s copy with inscriptions, Cincinnati, 1860. Sold for a record $3,250.
  • <b>Christie’s Paris:</b> Blaise Cendrars and Fernand Léger, <i>La Fin du monde filmée par l’ange N.-D.,</i> Paris, Editions de la Sirène, 1919
    <b>Christie’s Paris:</b> André Breton, <i>Second manifeste du Surréalisme,</i> Paris, Editions Kra, 1930
    <b>Christie’s Paris:</b> Paul Eluard and Pablo Picasso, <i>La Barre d’appui,</i> Paris, Editions « Cahiers d’Art », 1936
    <b>Christie’s Paris:</b> Blaise Cendrars and Fernand Léger, <i>La Fin du monde filmée par l’ange N.-D.,</i> Paris, Editions de la Sirène, 1919
    <b>Christie’s Paris:</b> Hans Bellmer, <i>Die Puppe,</i> Paris, G.L.M., 1936
    <b>Christie’s Paris:</b> Salvador Dali, <i>La femme visible,</i> Paris, Editions Surréalistes, 1930
  • <b>Doyle, The Estate of Oleg Cassini. June 27</b>
    <b>Doyle, The Estate of Oleg Cassini:</b> KENNEDY ONASSIS, JACQUELINE Typed letter signed to Oleg Cassini. $400 to $600
    <b>Doyle, The Estate of Oleg Cassini:</b> [CASSINI-KENNEDY FASHIONS] Important archives related to the development of fashions for Mrs. Kennedy… $4,000 to $6,000
    <b>Doyle, The Estate of Oleg Cassini:</b> [CASSINI-KENNEDY FASHIONS] Detailed ledger of the Kennedy White House years… $500 to $800
    <b>Doyle, The Estate of Oleg Cassini:</b> KELLY, GRACE. Four autograph letters to Oleg Cassini. $5,000 to $8,000
    <b>Doyle, The Estate of Oleg Cassini. June 27</b>
    <b>Doyle, The Estate of Oleg Cassini:</b> CASSINI, OLEG. Group of Kennedy-era original fashion sketches. $1,000 to $1,500
    <b>Doyle, The Estate of Oleg Cassini:</b> KENNEDY ONASSIS, JACQUELINE. Autograph letter signed to Oleg Cassini. $800 to $1,200
    <b>Doyle, The Estate of Oleg Cassini:</b> CASSINI, OLEG. Fashion sketch titled “Mrs. Kennedy-Palais de Versailles-State Dinner.” $800 to $1,200
    Doyle, The Estate of Oleg Cassini: [CASSINI, OLEG - KENNEDY, JACQUELINE.] Group of approximately 130 original fashion designs… $800 to $1,200.

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