With the news that Borders Books is shutting down, I had another question at the back of my mind yesterday: what happens to Kobo, the inexpensive e-reader produced mainly via Indigo Books, but in which Borders was a minor investor?
The Quill & Quire blog provided an update today: Kobo issues statement about Borders liquidation. Borders apparently has an 11% stake in Kobo, and there are conditions around the shares which may prevent them from being liquidated in quite the way people want to do. So Kobo has filed objections (along with other creditors) in U.S. bankruptcy court.
I also wondered what would happen to registered Kobo customers. But Kobo has already been gradually trying to transition their accounts directly to Kobo and away from Borders, so it sounds like everything will still function for these people the way it’s supposed to.
What a mess. And adding this extra financial stress onto Kobo is just one of the almost countless ripples flowing out from the Borders dissolution.