That's fine. I didn't sell or buy any today. The chart hardly showed the effect of todays move. The TA still shows a move is likely to the downside. I think that part of the move today was caused by news from the Bloomberg wire that Bertelsman has had talks with both Barnes & Nobel and Amazon about possible cooperation. The article was brief and realy didn't say much but it stirred up speculation. I think Bertelsman will be more competition than a help to Amazon.com. I doubt that they would be satisfied playing second fiddle to Amazon or B & N, as the article suggests. In the long-run, the direct publisher to the public business model will "maximize profits" for Bertelsman. Until they can get their own web efforts barreling ahead on the planned expenditure of over 200 million Deutch marks, they could benefit by increased sales through Barnes & Nobel, Borders and Amazon. From what I've read elswhere, the intent of Bertelsman is not to form a "partnership" as the article jumped to conclude from the mention that talks had taken place.
My guess is that some of the rally was a release of built-up tension over recent news. I think the market rally and Amazon's rally will be short lived. Particularly AMZN's.
This may have been posted already but here goes:
seattletimes.com
<Posted at 11:22 a.m. PDT; Tuesday, August 18, 1998
German firm may seek Amazon partnership
by Bloomberg Newss
GUETERSLOH, Germany - German media giant Bertelsmann denied a report that its television and radio broadcasting unit is interested in buying some or all of U.S. broadcaster CBS, but it wouldn't comment on reports that it might seek a partnership with Seattle-based Amazon.com.
The German monthly Manager magazine reported that Bertelsmann is in talks with Amazon.com and Barnes & Noble about possible cooperation in the online book industry. Bertelsmann is launching its "Book Online" Internet bookstore this fall and has said it's aiming to overtake Amazon.com as the industry's leader.
"The question of partnerships remains open," spokesman Manfred Harnischfeger said.
The magazine also reported that CLT-Ufa, Europe's largest broadcaster and a joint venture of Bertelsmann and Audiofina, is interested in buying some or all of CBS as part of its U.S. expansion strategy. The magazine quoted an unnamed Bertelsmann management board member as saying CBS was "made for us."
But Harnischfeger said, "We have no interest. . . . We don't want a stake in something we can't lead."
Bertelsmann, as a foreign company, wouldn't be able to own more than a 20 percent stake in a U.S. broadcaster, Harnischfeger said.
New York-based CBS owns the No. 2-rated U.S. television network, radio and television stations, cable networks, the Country Music Television and other assets.> |
