Barnes & Noble -- A Premature Celebration

Tickers in this article: BKS

NEW YORK (TheStreet) -- With Microsoft's(MSFT) $300 investment, Barnes & Noble(BKS) has gone from acutely troubled to sitting pretty, at least according to many in the media.

Motley Fool, for example, simply stood and cheered: "It's no secret that Barnes & Noble has struggled in the face of increasingly fierce digital competition, but today's massive infusion of capital will go a long way in easing its troubles. The deal finally creates a formidable third player in the e-reader space behind Apple and Amazon.com, and also gives Barnes & Noble the financial muscle to fight off increasingly frustrated activist shareholders in the process."

Motley Fool, for example, simply stood and cheered: "It's no secret that Barnes & Noble has struggled in the face of increasingly fierce digital competition, but today's massive infusion of capital will go a long way in easing its troubles. The deal finally creates a formidable third player in the e-reader space behind Apple(AAPL) and Amazon(AMZN) , and also gives Barnes & Noble the financial muscle to fight off increasingly frustrated activist shareholders in the process."

Motley Fool purports to have answer. Their headline read: "Why Barnes & Noble Shares Skyrocketed." But Barron's knows that when a company's basic business -- retail bookstores -- is so congenitally troubled, there are, even in the face of Microsoft's involvement, more questions. Barron's ran this headline: "Can Microsoft Help Barnes & Noble Start a New Chapter?" With apologies to the media who merely stood and cheered, the answer is, all weighed, a resounding 'probably not.'