• Skip to main content
  • Skip to primary sidebar
  • Login
  • Register
Publishers Lunch logo Publishers Lunch logo
  • Publishers Marketplace
  • Site Guide
  • Help
Login Sign Up
  • Personnel
  • AI
  • Compensation
  • Unions
  • Book Bans
  • New Releases
  • Earnings
  • The Trial
  • Archives
Publishers Lunch logo
  • Publishers Marketplace
  • Site Guide
  • Help
  • Publishers Marketplace
  • Site Guide
  • Help

May 19, 2011By Michael Cader

Liberty Media Offers to Buy Barnes & Noble

May 19, 2011By Michael Cader

After an investigation of strategic options begun by Barnes & Noble’s board last summer, today after the close of the market the company announced an offer from a prospective buyer. The special committee of the board charged with evaluating offers said that John Malone’s Liberty Media has offered $17 per share in cash to acquire control of the company. But “the proposal states that it is contingent on the participation of founding chairman Leonard Riggio, both in terms of his continuing equity ownership and his continuing role in management.” The committee says it “will evaluate this proposal” along with financial advisors Lazard Freres.
Last October Riggio said he “remains open and flexible towards any solution which is good for all stockholders.” At the time he reaffirmed, “…should an interested investor or group of investors desire me to be part of a group, I will consider such participation, and if I decide to participate with any investor or group, I will negotiate in good faith on matters of governance and control. It is not necessary for me to be the controlling shareholder of such a group.”

The announcement is preliminary–the company “cautions” that “the proposal from Liberty Media has not yet been evaluated by the special committee and its advisors.” And they do “not intend to comment further regarding this proposal or the company’s evaluation of strategic alternatives, unless a specific transaction is recommended.”

But shares jumped in after-market trading on the news, rising almost 19 percent to 16.73 after closing regular trading at $14.11 per share. While it’s a little premature, it’s pretty clear the market believes this is the beginning of bidding for the bookseller, not the end, with the expectation of higher offers to come. (Barnes & Noble is heavily shorted as well, so an offer like this will drive the price up quickly as those shorts get covered.) Ron Burkle, the single largest holder of Barnes & Noble stock after Riggio with just under 20 percent of the company’s shares, purchased most of that block at $20 a share and above. In testimony last July in his campaign to overturn the company’s poison pill plan, Burkle had testified that he considered–but then decided against–making his own offer for the company at $25 a share.

The stock has been on a roller-coaster of sentiment, rising to almost $19 a share in February as Borders was heading to bankruptcy, and crashing to historic lows of $8.77 a share less than two months later, before climbing back in May, helped by reports of a new ereader announcement for next week. (As previously disclosed, I bought shares back recently, and still hold most of those purchases.)

Liberty Media is a conglomerate and investment vehicle which owns Starz and QVC and substantial online and ecommerce companies among other things.

Filed Under: Bookstores, Finance, Free

sidebar

Primary Free Sidebar

Login

Forgot Password Quick Pass User Login
Get Full Access
The Publishing Industry’s Essential Daily Read

Each Publishers Lunch Deluxe subscription includes full access to our searchable multi-year archive of industry news, a nightly email reporting 10 to 50 deal transactions, and our database of industry contacts, scripts, and posting privileges.

Learn More

RSS Automat

  • Charlie Kirk's Book Sold Out at Amazon; Publishers Claims They Sold Over 60K on Tuesday, While BN Is Selling "A Ton" December 10, 2025 Wall Street Journal
  • Assouline Publishes Emily in Paris Book December 9, 2025 Press release
  • Elif Shafak Takes Over From Bernardine Evaristo As President of the Royal Society of Literature December 8, 2025 Guardian
  • Daunt Continues to Propagate the Idea that of An IPO for Barnes & Noble + Waterstones, Even Though Public Markets Are for Growth Companies, and No One Besides Elliott Wants to Own Two Unrelated Book Chains December 5, 2025 BBC
  • Publishers Complain About Edelweiss Price Increases December 4, 2025 PW
  • Lauren Graham and Amy Sherman-Palladino to Write Gilmore Girls Books for Fall 2027 December 3, 2025 AP/press release
  • Smashwords Is Reducing (AKA "Simplifying") Royalty Rates in 2026 December 3, 2025 email/social posts
  • PEN America Awards Grants For Works-In-Progress December 3, 2025 PEN
  • Chicago Indie Bookstore Closes After B&N Moves In December 1, 2025 Chicago Tribune
  • Patterson: "I don't have a book factory....People got the wrong f---ing idea." November 24, 2025 Hollywood Reporter
Publishers Marketplace logo

Contact Us

News

  • Publishers Marketplace
  • Report News
  • Discuss
  • Classifieds
  • Rights Offerings

Deals

  • Report A Deal

Books

  • Buzz Books

Jobs

  • Job Board
  • Privacy Policy Terms of Use