savviest consumer groups, and the traditional college bookstore can be a clumsy distribution center.
But then came the public offering of VarsityBooks.com. Offered at $10 last Tuesday, the stock closed on opening day slightly below the IPO price. Citing a quiet period, Varsity declined to comment on its stock performance. But other textbook companies argue the inauspicious beginning reflects the market's rejection of one firm, not the entire segment. Matt Johnson, CEO of BigWords, says the recent IPO flop would have no impact on the company's eventual decision to go public.
But others see the textbook market as part of the larger picture. "Quite frankly, investors are going to begin looking at the underpinnings of a business," says Adam Kanner, CEO of Edu.com, a site that offers students everything from phone service to computer software.
Evidently, investors recognize that adding a .com to the name of a retailing operation doesn't change the rules of the retailing business.
The Fewer the Merrier
Mergers and acquisitions have already become the norm in 2000. Firms less than six months old with an intuitive URL have become ripe takeover candidates.
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