Thursday, February 17, 2011

Will Amazon (AMZN), Apple (AAPL), Google (GOOG) to Gain from Border's (BGP) Bankruptcy?

With Borders (NYSE:BGP) now in the midst of the bankruptcy process, the question is which companies will benefit the most from it. More than likely it'll be Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG), and to a lesser extent, Barnes and Noble (NYSE:BKS).

At issue in the short term is the closure of 200 stores by Borders, which, according to Forbes, could result in about $400 million in revenue being up for grabs. Forbes came to the number on the assumption the 200 stores being closed account for about 20 percent of overall revenue for the company.

While not exactly big numbers when taking into account the large Internet companies, over the long term it could account for some nice incremental additional sales to the retail tech majors, particularly for those focusing on magazine sales.

Amazon will obviously get the bulk of the book sales from the drop in retail stores, with Barnes and Noble picking up the majority of the rest.

Border's had generated about $2 billion in overall sales annually.

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