Border Stores investor William Ackerman is providing some color commentary on the Borders sale process. As a major investor in Borders (over 30%) he is trying to gin up some interest in the bizarre idea that Amazon.com should buy Borders. Is there really so little interest that this idea is posited?
Handicapping the buyers:
Private Equity buy: Pershing to take it private 1:2 Odds on Favorite
Some other PE firm: 3:1 (Pacific Equity Partners, Others)
Follett Stores: 5:1 (Borders would be a good match with Follett College and a concern for B&N/ B&N College)
BAM: 7:1 (Interesting match with BAM store locations. Combo would would be impressive)
Indigo Books & Music: 7:1 (No where to go in Canada what better opportunity will there be to become a bigger more significant player - could be the dark horse).
B&N: 33:1 (Similar odds to the winner of the Belmont so anything's possible. Probably not a real contender unless Borders goes Chapter 11 then they can renegotiate the leases).
Ingram 100:1 (Would they try this again? The environment is significantly different than 1999 but this is a long shot).
WH Smiths: 200:1. They just got out of this market so unlikely they would get back in.
Target: 200:1
Walmart: 500:1
Amazon: 1000:1 (Maybe worth a flutter).
Well that was fun...
Thursday, June 12, 2008
Wednesday, June 11, 2008
Virtual
This video takes video conferencing to a whole new dimension. Quite astounding.
Hat tip to Brantley.
The ‘Cisco On-Stage TelePresence Experience’ was an ambitious collaboration between Cisco and Musion Systems, which took place during the opening of Cisco’s Globalization Centre East in Bangalore, India. Musion seamlessly integrated their 3D holographic display technology with Cisco’s TelePresence’s system to create the world’s first real time virtual presentation. Cisco CEO John Chambers, who was live on the Bangalore stage, ‘beamed up’ Martin De Beer, the Senior Vice President of emerging Technologies, and Chuck Stucki the General Manager of TelePresence, live from San Jose, California. Chambers was then able to have a ‘face to face’ discussion with De Beer and Stucki on the future of Cisco TelePresence, demonstrating first hand the potential capabilities of the system in front of the watching audience.
Hat tip to Brantley.
Jane F - The Blow by Blow
The NY Observer prints their version of events leading to the resignation of Jane Friedman at HarperCollins.
That same morning Ms. Friedman received a phone call from someone at News Corp. asking her to please come see Mr. Murdoch at 4:30 in his office six blocks away. According to one of Ms. Friedman colleagues, who spoke to her recently, the caller did not explain what Mr. Murdoch wanted to talk to her about. And so Ms. Friedman, fresh off a triumphant turn at Book Expo America the weekend prior, and with strong fourth-quarter results expected at the end of the month, went to the News Corp. building and took the elevator to Mr. Murdoch’s office. When she arrived, he told her that he had given her job to her deputy, a talented young businessman named Brian Murray who had been with HarperCollins since 1997. By midnight that night, the entire publishing world knew that Ms. Friedman was out, and her spokeswoman issued a statement announcing that she had decided to retire and would do so immediately.Some of this rings true from my own experience; maybe I'll elaborate one day although it is no where near as interesting.
Where the Web Is Taking Us: The Inevitable Future and the Publisher's Role In It
Mike Shatzkin has uploaded a transcript of a speech he gave to small and independent publishers at this years BookExpo conference. Here is the first paragraph (and you can find the rest of it here):
The basic premise under which we're operating here, I'll summarize for those of you have never heard or read my work before, is that horizontal, format-specific media entities are oh, so 20th century, and won't work very deep into the 21st. The reason for that is the web, which almost forces vertical organization. Horizontal presentations across subject matter -- like CBS, Random House, or The New York Times -- were the products of a capital-intensive, limited-distribution universe. CBS came out of an era when there were three national TV networks: they all tried to appeal to the broadest possible audience. Daily newspapers, to support their printing and distribution infrastructure, also had to appeal to just about everybody; the Times could get away without a comic strip page, but that was its only concession to verticality -- a more intellectual audience. And book publishers were relying primarily on promotional media -- newspapers, radio, and TV -- and distribution outlets -- bookstores -- that were also appealing to people across the board. It didn't matter what subjects Random House or Harper or Simon & Schuster published; what mattered is that each book have a large enough audience to be worth employing the powerful machine they controlled.
Tuesday, June 10, 2008
Borders Close Sale
Five days after announcing an agreement to sell their Australian and NZ stores, Borders has annouced the deal has closed. All regulatory hurdles were overcome in the first go-around earlier this year and substantial due dilligence must also have been completed before the original deal fell apart. Press release
Time to Re-Think BookExpo
Imagine the lone guy on the periphery minding his stand with only a solitary apparently lost attendee to keep him company once an hour. By some accounts that was the state of affairs sometime over the weekend at BookExpo America in Los Angeles. In advance of the fair Thomas Nelson, one of the largest publishers in the US decided to pass on attending the show. This action was different than the publisher boycott of several years ago; in this case, Nelson recognised that exhibiting at BookExpo is increasingly irrelevant in addressing the dynamics of the market place. In an age when the traditional publishing schedule is looking decidedly frayed, how BookExpo measures these dynamics will determine how many publishers continue to value their attendence.
In much the same way that Publisher's Weekly has seen their traditional advertising model change fundamentally as the bulk of bookstore book purchases are made centrally and six - nine months in advance of publication, BookExpo is in danger of suffering a similar dislocation. In PW's world there is no need to advertise and in BookExpo's world attendance becomes an expensive way to reach independents. More publishers will drop out - perhaps not next year as the show is in New York but it will happen, because the current show format is an old and increasingly ineffective tool. The decline will accelerate as more publishers take advantage of electronic marketing and promotions tools such as NetGalley (functionality will rapidly expand across the MarCom value chain) and more publishers will experiment with virtual trade shows , webinars and virtual worlds like Second Life.
There are two segments to BookExpo - the education program and the exhibits - and both need revamping. On the education side, BookExpo is losing ground to new upstarts like TOC and SIIA conferences. In both these cases, the conference organizers are successfully exploring the intersection of publishing and technology which many of us in the traditional publishing world continue to battle. Attending SIIA conferences with its breadth of content and technology companies all addressing new and old problems in unique ways can be a stunning business experience. At BookExpo we may see this in isolated cases but not comprehensively. In the traditional publishing market an education program similar to TOC or SIIA is still a market opportunity given the concentration of publishers attending BookExpo. On the other hand O'Reilly (TOC) may have already established the beach head. Consumers are decidedly lacking at BookExpo and in some other trade education programs panel discussions include consumers - in one memorable case they were all thirteen year old girls. Our business is in complete flux and that's the kind of education we should be looking for.
On the exhibits side, BookExpo must lead in the expansion of marketing and promotion programs that go beyond the physical limits of a three day event in a location not everyone can attend. The BookExpo America site should be a 365 day exhibit space. Many publishers and some websites are hosting e-versions of their catalogs. Coupled with more product details, ordering facilities, merchandising tools, etc. the traditional conference attendee should be able to visit and interact with all publisher products on the BookExpo site. (I do mean all publishers). The experience can and should be better than visiting the physical show. The traditional publishing calendar is disappearing - it serves no purpose (just as television has eroded their producer driven schedules) other than as a reminder of the formulaic approach to publishing. The physical exhibit can continue but it must change unless it is to devolve into a middling trade show for small and medium sized publishers.
BookExpo also needs to think strategically about exhibitors and to seek new categories of attendees. There should be more technology companies, service companies and others. Since the market is retail what is more logical than encouraging more vendors who market store systems and products? On the technology side there are many vendors who want to expand into the publishing business but do not attend BookExpo. They do attend SIIA, TOC and Book Business conferences. Expansion along these lines is a double-edged sword since a target audience needs to be in attendance. For that, a stronger education program and specific outreach programs need to support exhibitors and attendees. First time exhibitors should get two years for one paid year for example. (As an aside, I also believe the central exhibit floor 'neighborhood' where the largest publishers congregate should be broken apart to encourage more interaction).
Anyone who has stayed over the weekend at the Frankfurt bookfair (as I did on my first visit - and never again) will hiss and blubber over the idea that BookExpo be open to consumers. This issue has previously been debated by BookExpo managers, and indeed at Frankfurt, the issue of consumers attending the fair has long been controversial with the UK and US publishers. My suggestion is based on simple logic. Book reading is declining so what better way to introduce consumers to what publishers have to offer than showing them. Look at the success of the various city wide book fairs including the one in DC.
I have always enjoyed attending BookExpo but seeing the lack of traffic in many areas this year I doubt I would be the only one considering rethinking my exhibition participation for next year. The fact that BookExpo is in NYC next year will cover over the troubling issues because of the influx of many publishing staffers. In reality the addition of 10,000 publishing staff attendees from NYC is not really what will help return BookExpo to the preeminence it deserves.
In much the same way that Publisher's Weekly has seen their traditional advertising model change fundamentally as the bulk of bookstore book purchases are made centrally and six - nine months in advance of publication, BookExpo is in danger of suffering a similar dislocation. In PW's world there is no need to advertise and in BookExpo's world attendance becomes an expensive way to reach independents. More publishers will drop out - perhaps not next year as the show is in New York but it will happen, because the current show format is an old and increasingly ineffective tool. The decline will accelerate as more publishers take advantage of electronic marketing and promotions tools such as NetGalley (functionality will rapidly expand across the MarCom value chain) and more publishers will experiment with virtual trade shows , webinars and virtual worlds like Second Life.
There are two segments to BookExpo - the education program and the exhibits - and both need revamping. On the education side, BookExpo is losing ground to new upstarts like TOC and SIIA conferences. In both these cases, the conference organizers are successfully exploring the intersection of publishing and technology which many of us in the traditional publishing world continue to battle. Attending SIIA conferences with its breadth of content and technology companies all addressing new and old problems in unique ways can be a stunning business experience. At BookExpo we may see this in isolated cases but not comprehensively. In the traditional publishing market an education program similar to TOC or SIIA is still a market opportunity given the concentration of publishers attending BookExpo. On the other hand O'Reilly (TOC) may have already established the beach head. Consumers are decidedly lacking at BookExpo and in some other trade education programs panel discussions include consumers - in one memorable case they were all thirteen year old girls. Our business is in complete flux and that's the kind of education we should be looking for.
On the exhibits side, BookExpo must lead in the expansion of marketing and promotion programs that go beyond the physical limits of a three day event in a location not everyone can attend. The BookExpo America site should be a 365 day exhibit space. Many publishers and some websites are hosting e-versions of their catalogs. Coupled with more product details, ordering facilities, merchandising tools, etc. the traditional conference attendee should be able to visit and interact with all publisher products on the BookExpo site. (I do mean all publishers). The experience can and should be better than visiting the physical show. The traditional publishing calendar is disappearing - it serves no purpose (just as television has eroded their producer driven schedules) other than as a reminder of the formulaic approach to publishing. The physical exhibit can continue but it must change unless it is to devolve into a middling trade show for small and medium sized publishers.
BookExpo also needs to think strategically about exhibitors and to seek new categories of attendees. There should be more technology companies, service companies and others. Since the market is retail what is more logical than encouraging more vendors who market store systems and products? On the technology side there are many vendors who want to expand into the publishing business but do not attend BookExpo. They do attend SIIA, TOC and Book Business conferences. Expansion along these lines is a double-edged sword since a target audience needs to be in attendance. For that, a stronger education program and specific outreach programs need to support exhibitors and attendees. First time exhibitors should get two years for one paid year for example. (As an aside, I also believe the central exhibit floor 'neighborhood' where the largest publishers congregate should be broken apart to encourage more interaction).
Anyone who has stayed over the weekend at the Frankfurt bookfair (as I did on my first visit - and never again) will hiss and blubber over the idea that BookExpo be open to consumers. This issue has previously been debated by BookExpo managers, and indeed at Frankfurt, the issue of consumers attending the fair has long been controversial with the UK and US publishers. My suggestion is based on simple logic. Book reading is declining so what better way to introduce consumers to what publishers have to offer than showing them. Look at the success of the various city wide book fairs including the one in DC.
I have always enjoyed attending BookExpo but seeing the lack of traffic in many areas this year I doubt I would be the only one considering rethinking my exhibition participation for next year. The fact that BookExpo is in NYC next year will cover over the troubling issues because of the influx of many publishing staffers. In reality the addition of 10,000 publishing staff attendees from NYC is not really what will help return BookExpo to the preeminence it deserves.
Ian Fleming
There is an exhibit opening at the Imperial War Museum this weekend on Ian Fleming and James Bond. There have been several news reports about Fleming and Bond (aside from the new book by Sebastian Faulks). Here are some links to those items:
Telegraph: Joseph Connolly got hooked on 007 when he was 12 and has been busy collecting the novels - from paperbacks to first editions - ever since. Here he provides a bookworm's guide. (I did something of the same thing last year: "Noting the release of the latest James Bond movie Casino Royale, the December issue of Rare Book Review included a spread on first editions of all the James Bond books. Collecting true first editions of the set is likely to set you back $150,000. (Sniff...time for that raise). What is useful about the article is that each edition is described so that should you come across one of these at a local thrift store you will know what to look out for").
TimesOnline has an interactive exploration of the exhibit.
International Herald Trib: Ian Fleming, had he lived, would have celebrated his 100th birthday on May 28. James Bond, his greatest invention, is probably a bit younger, strictly speaking (the evidence in the books is a little contradictory) - except that Bond, of course, is ageless and immortal. Never mind those three packs a day; he has wind to spare. His liver, astoundingly, is still holding up. He has survived not only Fleming but Kingsley Amis and John Gardner, who, among others, kept on publishing Bond novels in Fleming's stead.
Times Online: Bond never goes out of fashion.
For the insatiable: CommanderBond.net
Telegraph: Joseph Connolly got hooked on 007 when he was 12 and has been busy collecting the novels - from paperbacks to first editions - ever since. Here he provides a bookworm's guide. (I did something of the same thing last year: "Noting the release of the latest James Bond movie Casino Royale, the December issue of Rare Book Review included a spread on first editions of all the James Bond books. Collecting true first editions of the set is likely to set you back $150,000. (Sniff...time for that raise). What is useful about the article is that each edition is described so that should you come across one of these at a local thrift store you will know what to look out for").
TimesOnline has an interactive exploration of the exhibit.
International Herald Trib: Ian Fleming, had he lived, would have celebrated his 100th birthday on May 28. James Bond, his greatest invention, is probably a bit younger, strictly speaking (the evidence in the books is a little contradictory) - except that Bond, of course, is ageless and immortal. Never mind those three packs a day; he has wind to spare. His liver, astoundingly, is still holding up. He has survived not only Fleming but Kingsley Amis and John Gardner, who, among others, kept on publishing Bond novels in Fleming's stead.
Times Online: Bond never goes out of fashion.
For the insatiable: CommanderBond.net
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