The Bookseller.com

2nd December 2008

Ackerman: Amazon should buy Borders

13.06.08

Pershing Capital Management's William Ackerman, a major stakeholder in Borders Group in the US, said that the bookseller should consider approaching Amazon.com about a possible acquisition, reports the Associated Press.

Hedge fund manager Ackerman said Borders, of which his fund owns about 30%, could become the "bricks-and-clicks" component of Amazon's nationwide sales strategy. Borders, which put itself up for sale in March, has about 500 retail outlets across the country.

"Amazon could buy the company for about $400m to get those locations that would take more than $1bn to build," he told reporters at a conference in New York. "You have to think of it like how Apple has retail stores across the country."

One reason that might persuade Amazon is that the company may soon lose its state tax advantage across the nation, as some 18 states are ramping up to require e-commerce businesses to collect sales tax. Ackerman said that once Amazon loses its tax advantage that buying retail locations will make sense. 

He did not have any knowledge if the Seattle-based online retailer has approached Borders' board of directors, of which he is not a member.

AP

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