No, Amazon (AMZN) Shouldn't Buy Borders (BGP). But An Amazon Retail Presence Makes Sense

From Silicon Alley Insider: Borders Group (BGP) shareholder Bill Ackman told reporters that he thinks Amazon (AMZN) should buy Borders to jump start a “bricks and clicks” strategy. Ackman is obviously just trying to whip up some enthusiasm–any enthusiasm–for his also-ran book chain (which recently put itself on the block), but the idea is worth considering.

Perhaps surprisingly, we actually don’t think a retail strategy for Amazon would be such a horrible idea. Done right, a retail presence could increase Amazon’s market share, amplify its brand, and improve its convenience for consumers. And, done right, it might also be built without wrecking Amazon’s business model.

Buying Borders, however, isn’t the answer…

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