By Jeanine Poggi 08/09/10 - The Street
NEW YORK (TheStreet) -- Amazon was pegged as the most likely buyer of Barnes & Noble if the chain puts itself up for sale, according to a poll of readers of TheStreet.
Barnes & Noble announced earlier this week that it's considering strategic alternatives, which could include staking a "For Sale" sign on its front lawn. Since the announcement, speculation over potential bidders has run rampant, with the spotlight flashing on private-equity players like Apollo Management. Fears have also grown in certain quarters that Barnes & Noble may not be able to find a buyer, raising a red flag for the entire book industry.
Still, in TheStreet's survey, more than 37% agreed that Amazon represents the most logical choice.
Amazon has been a thorn in Barnes & Noble's proverbial side since its inception in 1995, when it was solely a purveyor of books. B&N has consistently lost market share to its non-bricks-and-mortar rival, which has bested it on lower prices for hardcovers.
Now the battle has gone purely digital. While Amazon took the lead, launching its Kindle e-reader back in 2007, Barnes & Noble is playing catch up, rolling out an e-bookstore last summer and introducing its Nook e-reader in October 2009.
Amazon and Barnes & Noble continue to go head-to-head in battling to offer the cheapest e-reader device. Barnes & Noble ignited a price war in June, lowering the cost of the Nook to $199 from $259, and saying it would offer a basic version for just $149.
Only hours later, Amazon responded by slashing the price of the Kindle to $189 from $259.
Since then, Amazon has gone even further, saying it will offer a Wi-Fi Kindle for $139, making it the lowest priced e-reader among big brands.
By purchasing Barnes & Noble, Amazon would effectively wipe out its primary competition in the book space, which remains one of its fastest growing segments.
B&N Founder and top shareholder Leonard Riggio is also a potential buyer, according to 31.3% of voters. Riggio purchased Barnes & Noble in 1971 for just $750,000, turning it into the nation's book retailer of choice for the better part of two decades.
More at The Street.
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