November 06, 1998 Letter from Richard Howorth to Booksellers November 6, 1998 Dear Bookseller, You have probably already read the news that Barnes & Noble, Inc., has agreed to purchase 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. 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: The 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. 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. Barnes & 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�s 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 longstanding, 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/). If you would prefer a hard copy please send an email to Keva Mosher ([email protected]) 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�re concerned, it�s business as usual unless and until something happens to make that no longer possible. If you have any questions, feel free to email me at [email protected], or call me at Square Books at 601-236-2262. Thank you for your attention. Sincerely, Richard Howorth President, American Booksellers Association Topics: B&N/Ingram,