Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: David Blocher who wrote (24475)	11/4/1998 3:51:00 PM
From: OtherChap	Respond to of 164684

> Here's one: What would you say if I told you that Barnes & Noble >(BKS:NYSE) is actively involved in negotiations to buy privately held >Ingram Books, the country's largest book distributor, which also >happens to supply Amazon.com (AMZN:Nasdaq) with the majority of its >book >though the company is expected to make a statement later today. If they announce plans for merger after the bell today, Amazon will get KILLED tomorrow.

To: David Blocher who wrote (24475)	11/4/1998 4:33:00 PM
From: M. Frank Greiffenstein	Read Replies (3) \| Respond to of 164684

News is neutral... David, anti-trust laws should block BKS from trying to destroy AMZN by messing with shipments. It is called tortious interference. Of course, anti-trust laws should have stopped MSFT from strong arming people too <g>. DocStone

To: David Blocher who wrote (24475)	11/4/1998 5:22:00 PM
From: L.J. Hoffman	Read Replies (4) \| Respond to of 164684

>>If Herb Greenberg's sources are good. This is not good news for Amazon<< If you believe this you have no business trading AMZN. In the words of Monty Python, you must look on the bright side of life. The acquisition is really bad news for Barnes and Noble. They're buying a company that does a lot of business with Amazon. Who would buy stock in a company whose profits are tied to an economically unstable entity like Amazon? What if they default on a huge account payable? Therefore, if Barnes and Noble is at risk--it's smart to buy stock in the competitor most likely to benefit from instability at BKS. Thus, we buy AMZN. It's so simple when you take time to do due diligence.

To: David Blocher who wrote (24475)	11/4/1998 8:26:00 PM
From: Rob S.	Respond to of 164684

Nice dig - Very interesting. Bertlesmann being the World's largest print publisher (conglomerate) and 3rd largest media company in combination with Barnes & Noble plus Ingram would be awesome competition for anyone in thinking of competing with them. If you carry forward the 2nd key argument often used to justify Amazon's enormous valuations - that Amazon.com can build a more efficient system for marketing and order fulfillment, then you must conclude that the "end game" to this commercial revolution is for vertical integration to take place so that duplication of efforts and cost structures are eliminated. It just makes no sense that putting up web pages and back-office systems is all that is needed to complete this end game. Either Amazongonenutty.com must become a fully vertically integrated supplier or they must become an adjunct to others who amass the greatest part of the profits because they also compete on their turf. Publishing companies have editors, publicity departments, massive inventory and routing capabilities, and other infrastructure to develop and market books and music. Resellers, such as Amazon.com, take the editorial and marketing work of the publisher, massage it into a web page and make further comments and evaluations. They also duplicate the warehousing, back-office computers and other facilities. An integrated supplier/merchandiser would collapse all of that - reducing the costs and providing other market advantages. "Where would Amazon like to go tomorrow?"