Why has Amazon sought to acquire the Book Depository?Posted: July 4, 2011
Eoin Purcell is picking up comments on his blog – he’s up to four (including mine).
1) Increasing UK and European exposure
2) Building a better position in Australia
3) Defensive market-share building
4) Ensure that Waterstone’s new flush of confidence is quickly brought back down to earth. Waterstone’s and Book Depository could have been a perfect marriage, brokered by a Russian billionaire. Online commerce: check! Then sort out eBook (B&N deal for Nook in the UK), and the multi-platform job would have been done.
Check out Eoin’s blog here: http://eoinpurcellsblog.com/2011/07/04/go-read-this-amazon-to-acquire-the-book-depository-yahoo-finance/
I’ve been twittering the view that Amazon’s market dominance is far greater today than Waterstone’s/Ottakars in 2006, when they were referred to the Competition Commission. What do you think?
Edit: Philip Jones has written a useful piece on The Bookseller’s FutureBook site, which you can read here.
2nd edit, 6th July: The OFT has now announced that it will be investigating this acquisition. If you have any comments on the deal, you have until 18th July (that’s Monday week) to lodge them with the OFT at http://www.oft.gov.uk/OFTwork/mergers/Mergers_Cases/2011/805523. Sharpen your pencils. Full story here.