Google Throws Barnes & Noble a Lifeline

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Aug. 7 (Bloomberg) -- DeSilva & Phillips' Robin Warner and Bloomberg's Cory Johnson discuss Barnes & Noble teaming with Google’s shopping service to offer same-day delivery in selected urban areas in a bid to win more customers and compete with Amazon. They speak with Trish Regan on "Street Smart." (Source: Bloomberg)

Of all of this?

I think the reason this is happening now with google is because of the reason it is happening for amazon.

You have three of the biggest companies in the internet in technology -- google, ebay, amazon, all getting into this local delivery business.

One of the biggest reasons amazon is doing it right now is that he made -- they made a decision to start paying local sales taxes.

It no longer made sense to have their full film and centers in far from, tax -- fulfillment centers in far-flung, tax-friendly places.

This allowed them to change their business model.

It is important to recognize that google does see apple not just as a competitor, but also sees amazon as a competitor.

You have to wonder whether the recent dispute that amazon has been having with has shut -- with hash it -- with hachette means they might have some leverage.

Can they take on amazon's dominance?

I think it will be a battle.

You are on target.

The timing was an opportune time to do this.

There has been so much negative and public publicity about the amazon-hash it -- amazon- hachette negotiation going on that this was a good time for them to do it.

What do google and barnes & noble get out of it?

Barnes & noble has a problem right now.

Foot traffic in stores is down dramatically.

People are going online and ordering books, probably a lot of them from amazon.

For google, a big part of their business model is eyes going to their sites.

Their advertisers will pay them based on the number of people that are coming to the site.

But a lot of people aren't coming to their site, necessarily.

They are going to amazon.

What is in it for both of them is competition.

Indeed.

Cory, it's just amazing when you think of how much this industry has changed in a relatively short period of time, and it will continue doing so.

For these guys, it makes sense.

You want to be in there.

Barnes & noble, if it is going to survive, needs to think about its presence -- its internet presence.

They've been thinking about their internet presence for a long time.

Barnes&noble.com was a separate entity.

Amazon, most of the books that they sell, the majority of their books are actually digital books, sold on the kindle.

The very notion of receiving a physical hard copy of a book -- there is this thing, a book.

Who has this?

My kids walk into my home office and see books along the walls.

What is all that stuff for, daddy?

All my stuff is on the kindle.

You're a good role model for them, cory.

There is something still to be

This text has been automatically generated. It may not be 100% accurate.

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