3 Borders' Blunders
Chapter 2: Online vs. Overseas? Decisions, Decisions...
Around the same time Amazon (AMZN) 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.
Chapter 5: The Great Restructure
In 2006 Borders stock was trading around $20 a share when hedge fund manager William Ackman decided the stock price had significant growth potential, predicting that it could trade as high as $36. Ackman's Pershing Square Capital acquired an 11% stake in the company, establishing a relationship that would eventually keep the book seller afloat.But the stock never reached that level, peaking around $25 in March 2006, before beginning its treacherous descent.