Item#1
November 6, 1998
Dear Bookseller,
You have probably already read the news that Barnes & Noble, Inc., has
purchased the Ingram Book Company. You also probably know that Ingram is
the largest single supplier of books to ABA member bookstores, and that in
many ways, Barnes & Noble is our largest single competitor.=20
The best way to convey my personal opinion as well as that of the ABA about
this proposed acquisition is to present you with the Official ABA Statement:
he American Booksellers Association (ABA) considers the purchase of Ingram
Book Company by Barnes and Noble, Inc., to be a devastating development
that threatens the viability of competition in the book industry, and
limits the diversity and availability of books to consumers. The Board of
Directors of the ABA call on the Antitrust Division of the U.S. Department
of Justice and the Federal Trade Commission to investigate the proposed
acquisition and to take prompt and decisive action to stop this blatantly
anti-competitive combination.
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This acquisition, should it be allowed to take place, is just one more
example of the large scale corporate consolidation that has infiltrated
every corner of our culture. As the desire intensifies to increase bottom
line profits no matter what the other consequences, so does the
concentration of power in the book industry. Consumers are left with an
environment in which fewer and fewer people are deciding which books get
published, and ultimately, which books Americans can read and
buy.
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Barnes and Noble, a $3 billion company and the largest US book retailer,
recently entered into an alliance with the $14 billion media giant,
German-owned Bertelsmann AG. Ingram Book Company is the largest book
wholesaler in the United States, with over a billion dollars in sales to
independent bookstores and other competitors of Barnes & Noble. Now, with
Barnes & Noble=92s proposed acquisition of the billion dollar Ingram Book
Company, there can be little doubt that the book industry is falling prey
to the same anti-competitive ills that currently plague the computer
software and other industries. This deal would make independent bookstores
virtually dependent upon their largest competitor, one which the ABA
alleges in pending antitrust discrimination litigation in San Francisco has
had a long-standing, systematic strategy of driving independents out of
business to stifle competition.
While there are some smaller, unaffiliated book wholesalers that provide
independent booksellers with excellent service, Ingram Book Company is a
primary distribution source for the vast majority of ABA member stores, and
we consider this development to be deeply troubling. We will use all of
our strength and available resources to fight it.
For stores who wish to help ABA oppose this proposed acquisition, we are
making available a letter for you to send to the Attorney General of the
United States and the Chairman of the Federal Trade Commission, demanding
that this acquisition be reviewed immediately for its obvious
anti-competitive effects. We encourage you to put this letter on your own
letterhead and under your own signature, and to provide ABA with a copy. In
addition, we are providing you with a press release for you to use with
your local media on our protest to the Government. Both documents are
available on the BookWeb (http://www.bookweb.org/ingram). If you would
prefer a hard copy please send an email to Keva Mosher (keva at bookweb.org)
or call her at the ABA (800-637-0037, ext. 226).
While we are clearly outraged at this proposed acquisition, I do want to
urge you to temper your response. We are not suggesting, nor should you
suggest, that any store not do business with any particular company. As far
as we=92re concerned, it=92s business as usual unless and until something
happens to make that no loner possible.
If you have any questions, feel free to email me at
richard at squarebooks.com, or call me at Square Books at
601-236-2262.
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Thank you for your attention.
Sincerely,
Richard Howorth
President, American Booksellers Association