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Computer Sugar Daddy Fails to Save Bookstore Chain

Writer's picture: OurStudioOurStudio

Aug. 20 (Bloomberg)—Barnes & Noble Inc.'s stock surged a record 52 percent on April 30, the day Microsoft Corp. swooped in with an offer to buy a stake in the money-losing retailer and fund its expansion into electronic books.

The euphoria has evaporated as it becomes clear that even with Microsoft's considerable resources and push into tablets and mobile computing, a rapidly changing competitive environment means the largest U.S. bookstore chain will still struggle to avoid the fate of the music and movie stores.

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