Barnes and Noble Move Protests Amazon’s Exclusivity Agreement
Bookstore chain Barnes and Noble Inc (NYSE:BKS) has protested Amazon’s (NASDAQ:AMZN) exclusive agreements with publishers, agents and authors by refusing to sell books published by Amazon at its 703 book showrooms across the country. The books will, however, be available for sale on its website.
According to Barnes & Noble, Amazon’s relentless push to reach ‘exclusivity’ agreements with publishers, agents and authors has undermined the industry as a whole. Amazon recently signed up self-help author Tim Ferris and purchased over 450 children’s books by Marshall Cavendish. Amazon also entered in to a deal with Houghton Mifflin Harcourt to sell print versions of its books.
Barnes and Noble’s move will intensify rivalry between the two companies, already locked in competitive battle with their respective tablet products. Barnes and Noble is taking a big risk as its Nook e-reader is already not making a huge dent in the new tablet market.
Here’s how these two stocks are reacting to the news:
Barnes & Noble, Inc. (NYSE:BKS): BKS shares recently traded at $11.96, down $0.11, or 0.91%. They have traded in a 52-week range of $9.35 to $18.73. Volume today was 172,566 shares versus a 3-month average volume of 1,836,530 shares. The company’s trailing earnings are $-1.14 per share.
Amazon.com Inc. (NASDAQ:AMZN): AMZN shares recently traded at $176.60, down $17.84, or 9.18%. They have traded in a 52-week range of $160.59 to $246.71. Volume today was 11,111,494 shares versus a 3-month average volume of 6,010,420 shares. The company’s trailing P/E is 93.09, while trailing earnings are $1.90 per share.