After Barnes & Noble and Boarders reported disappointing financial outlooks today, some industry analysts have said that a merger or leverage buyout may be in the works for the booksellers. Some analysts said that with the influx of mergers and acquisitions taking place across industries, struggling bookstores like Barnes & Noble and Boarders make attractive targets for a LBO or merger.
News Corp. and NBC Universal said today that they are working together to distribute TV shows and movies through a new online video service, which is set to launch this summer. The move, aimed directly to counter the popularity of YouTube, will feature full episodes and clips from their current TV shows, older TV shows from their archives, and movies. News Corp. and NBC Universal have already signed up a variety of advertisers, including General Motors, Intel, and Cadbury-Schweppes.
Former congressman David A. Stockman is expected to be indicted on charges of accounting fraud related to his role as chairman of auto parts supplier, Collins & Aikman. The federal investigation on Stockman focuses on how earnings were reported in the financial reports from rebate programs with suppliers. The SEC is also investigating Collins & Aikman regarding the same accounting issue and is expected to file a civil complaint against Stockman.
Paul McCartney has signed a deal with Hear Music becoming the first artist to sign with the label created by Starbucks. The signing is another indication of retailers attempting to pry musical artists away from major record labels by setting up direct relationships with artists instead. Mass retailers have been targeting older stars like McCartney who are still able to generate nice record sales but no longer receive heavy radio play.