Barnes & Noble bitch slaps Amazon. Readers and investors don’t care $BKS $AMZN

English: Logo for the Barnes & Noble Nook

Image via Wikipedia

Barnes and Noble (NYSE:BKS) bitch slapped Amazon (Nasdaq:AMZN) by declaring they will no longer sell Amazon published books. Does Amazon care that it just got bitch slapped? Did it even notice? Did a young intern go rushing into Jeff Bezos‘ office with the news?

Following a Reg FD strategy will Amazon issue a press release declaring this to be a material event? I think not. Barnes and Noble is attempting to spin-off the Nook to supposedly unlock value. This means they need to distance themselves from Amazon. This also means Barnes and Noble investors may get screwed as the value of Nook leaves the house.

It also means that if as and when Barnes and Noble goes chapter 11, Amazon will be able to say Barnes and Noble played their own games. Observers following the publishing wars may declare this to be the tipping point. Readers, authors and investors may just give up on Barnes and Noble and let them sink away.

At the same time to put perspective into perspective Amazon reports lower earnings because of huge investment in infrastructure. Something Barnes and Noble could not possibly do.

George Gutowski writes from a caveat emptor perspective.

Barnes & Noble Nook Razzle Dazzle

Image representing Barnes & Noble as depicted ...

Image via CrunchBase

Barnes & Noble (BKS) rolled out the new Nook reader claiming that the inclusion of colour and aiming it partially at kids will be a marketing win. The price point does not skim the bottom of the barrel. The inclusion of colour is only a temporary advantage and will be easily matched by upgrades from competing products. Advertisers will want color to ensure their messages are more compelling.

The children’s market is compelling. You do spend money for the little ones. But it is the parent that spends. No information on how the parent is being engaged. So the children’s market may become an unfulfilled dream.

Barnes and Noble is huge in college and university text books. Students have to buy the material. The value proposition of digitizing learning materials is huge. University students will adopt technology. University students will look to save money. When will the nook play here? Significantly that is.

This is not the compelling e-reader move. So what if the heads of education in the five largest states get together and mandate digitized e-reader style text books and learning materials. The volume would compel text-book purveyors to re-purpose their material and lower costs.

William Lynch, Chief Executive Officer of Barnes & Noble said “reading anything and everything in brilliant color is the killer app…”

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.