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Comment by protomyth | Hacker News Reader

755.71M market cap - 510.40M debt - would be an interesting way to instantly get a lot of retail locations (700+ stores and 600+ campus stores).

I guess I should expect the Apple and Microsoft sites to contemplate each companies purchase. Probably some HP action in there too (so they can be more like Apple).

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I could see Microsoft buying B&N just because all the other cool kids are doing e-books and they're interested in getting into retail. No reason you can't sell Xbox 360 hardware/games and phones next to a bunch of books.

You seem to be assuming they own all of their retail stores. Is this true?

On their balance sheet, under assets, they record about $812M worth of value for their net property, plant, and equipment. With 720 store locations that comes out to about $1M in value per store. That's probably understated by a lot because of the excess depreciation charge they take.

I would humbly submit that PP&E likely is dominated by warehousing facilities and books at a place like B&N. It may include some real estate, but I wouldn't bet on it representing the value of 720 store locations, even with aggressive depreciation schedules.

I would bet their PP&E likely has a large emphasis on esoteric distribution equipment, as well as some stores. I am just wildly speculating though: the business of selling books is too crappy (low cashflow yeilds) to get me interested enough to crack open a 10-k.

I'm not assuming that. I assume they lease a lot of their space like everyone else.

There's one at a mall near me... that's definitely leased.

Most of the Apple stores are leased also.

You can safely say that about every chain that is found in malls and shopping centers.

I doubt Barnes & Noble would be a good fit for Apple, Microsoft, or HP; their stores are far too massive for a single-brand retailer. Perhaps some new competitor to Best Buy looking to swing for the fences?

I wouldn't expect them to stop selling books. I would expect an in-store area (much like they are planning for the nook) to display the companies wares (ex. HP PalmPad area with accessories).

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