This is bad news. Or is it?
Think of it this way: If Borders is absorbed into, say, Barnes & Noble, as shoppers we have one less outlet to choose from. As writers, our publishers have one less venue from which to sell our product. That means less sales. Less sales means publishers will be far more picky about where they invest their resources (i.e., time and money). Pickier publishers means we or our agents have a harder time selling our work. This is bad.
On the other hand, if, say, Borders is absorbed or simply disappears, doesn't that open up the playing field for the "little guy", the small and independent booksellers who oh so many times were squashed by the likes of a Borders or B&N moving into their neighborhood? Maybe, maybe not. There's still some big players besides B&N, including Amazon and Wal Mart, for example, who sell in large volumes at relatively low prices. In fact, analysts cite the presence of those retailers as one of the reasons Borders has failed.
As with most things, time will tell.
Borders explores sale, suspends dividend - Yahoo! News