This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Borders Story: The Final Chapter?

Chapter 2: Online vs. Overseas? Decisions, Decisions...

Around the same time Amazon (AMZN - Get Report) began to ignite a frenzy, emerging as an online seller of cheap books. But instead of going head-to-head with the rookie, Borders chose to focus its attention overseas, opening stores in the late 90s in the U.K., Singapore, Ireland, Australia and New Zealand, among others.

Borders' international push was a distraction to its U.S. business, and it wasn't until May 1998 (three years after Amazon's launch, and one year after Barnes & Noble went online) that the company rolled out its own e-commerce site.

Ultimately, Borders' attempts at e-commerce were unsuccessful, generating just $5 million in revenue in its first year in operation. By comparison, Amazon raked in $610 million, while Barnes & Noble (BKS - Get Report) posted $70 million in sales during the same period.

By 2001, Borders shuttered its Web site, relinquishing its online book selling to Amazon. Borders paid Amazon an undisclosed sum to develop a co-branded site. While Borders remained a partner and received a percentage of sales, Amazon was responsible for providing inventory, fulfillment, site content and customer service.

The partnership lasted until 2007, when Borders finally decided to create its own company-run e-commerce division.



Chapter 3: Borders Gets Aggressive -- Or Foolish

It was also in the late 90s speculation first arose of a potential merger between Borders and Barnes & Noble. While both companies fervently denied the rumors, the chatter resurfaced several times in the early part of the new millennium.

In 2000, Borders hired Merrill Lynch to explore strategic options, including a recapitalization, merger or leveraged buyout for the purpose of extending shareholder value. But by July of 2000, the company had removed its "For Sale" sign.

While management did not provide a reason for taking Borders off the market, analysts at the time hypothesized that it had been unable to find a buyer.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $427.63 0.00%
BKS $23.08 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs