Borders Group (BGP) Message Board

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Non-Tech : Borders Group (BGP)

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To: Glenn Petersen who wrote (342)	5/13/1999 11:50:00 PM
From: J.Y. Wang	of 411

I think AMZN buying BGP is a very interesting idea. It is quite different from the LCOS/TMCS/USA Networks deal where it didn't work out because CMGI felt that LCOS did not bend USA Networks over enough. As a matter of fact, an AMZN/BGP situation would be exactly the opposite of the LCOS/USA deal -- AMZN would be buying BGP with inflated stock. At this point, I am somewhat skeptical of AMZN buying BGP. Why? Because it would damage the "mystique" of AMZN as a pure net play and might hurt the stock. AMZN right now is kind of like the thing behind Door #1 on "Let's Make a Deal" -- no one knows exactly what it is (ie: no one knows exactly AMZN's potential, if any) and people are willing to pay out the nose for it. Buying BGP would be like opening Door #1 slightly and allowing a look inside it. People might start seeing and smelling that big pile of manure and run for the hills. In addition, I think books are just a beginning for AMZN and buying BGP will burden them with assets which are not wanted in the long term and, perhaps more importantly, dilute management skill and attention. I am tempted to sell BGP at this point.

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