Barnes & Noble stock fell almost 12 percent on Thursday following the disclosure of chairman Len Riggio’s big sale of 3.7 million shares, reducing his stake to roughly 20 percent (down from 30 percent at the beginning of December). Trading finished at $16.37 a share on heavy volume of 9.4 million shares, but now investors have a long weekend to cool off. While the recent sales by Riggio and Lberty Media have weighed on the company’s stock price, it had been usually high up until those sales — which made it easier for these big investors to sell. “Several weeks […]
Finance
Riggio Sells Another Big Piece of Barnes & Noble, Sending Shares Down
Any lingering expectation that Barnes & Noble chairman Len Riggio might still take the company’s bookstores private was further dampened Thursday morning by the disclosure that Riggio sold 3.7 million shares of the company’s stock. The SEC filing indicates he received the below-market price of $17.30 per share “in a privately negotiated block trade” yesterday. That reduces his holdings in the company to roughly 20 percent, or approximately 12 million shares. Riggio says in the announcement, “After this sale I remain the company’s largest shareholder, a position I feel very good about. I love this company and I believe in its […]
WME Details IMG Cost Cuts for Lenders
Sports Business Journal and The Wrap both obtained financial documents prepared in connection with William Morris Endeavor’s debt offerings, lining up financing for their acquisition of IMG. The transaction is due to close May 1, though the two sources disagree on the actual price (between $2.375 billion and $2.45 billion). The documents provide an interesting look at WME’s operations, as well as its ownership going forward. Their minority private equity backer Silver Lake will own 50 percent of the combined agency (up from 31 percent); WME will own 47 percent, and an Abu Dhabi sovereign wealth fund will hold 3 […]
Corporate: A Wiley Acquisition; and Job Cuts At RH Children’s UK and Weltbild
Wiley announced another sizable acquisition, agreeing to pay $175 million in cash to purchase French-based learning solutions provider CrossKnowledge, which focuses on leadership and managerial skills development. The deal is expected to close on May 1. Wiley has been investing heavily in their professional development division, and acquired a related firm, Profiles International, less than two weeks ago. CEO Steve Smith says the two purchases, along with Inscape (which they bought in 2012 for $85 million), “positions us as a leader in the rapidly-growing area of enterprise talent management. In today’s knowledge-based economy, organizations of all different shapes and sizes […]
Amazon Acquires ComiXology
Just hours after posting ceo Jeff Bezos’ letter to shareholders, Amazon announced after the close of the market on Thursday that it acquired digital comics firm ComiXology, confirming rumors circulating since the beginning of the month. The deal for undisclosed terms — is expected to close in the second quarter of 2014, and the seven-year-old company will keep its headquarters in New York (ComiXology also has offices in Los Angeles and Paris). According to co-founder and ceo David Steinberger, “ComiXology will retain its identity as an Amazon subsidiary and we’re not anywhere near done ‘taking comics further.'” ComiXology offers more than […]
Simply, Liberty Media Took the Money
Liberty Media filed their required disclosure with the SEC subsequent to their previously announced sale of 91 percent of their preferred shares in Barnes & Noble to “qualified institutional investors.” Their motives are pretty clear from the filing: Liberty received $250.7 million for the shares, after investing $204 million in the bookseller in August 2011. They also received 9 or 10 quarters of dividends while holding the preferred shares, good for 7.75% annually — giving them a return of over $80 million, or roughly 40 percent. The timing of the sale took advantage of a brief run-up in Barnes & […]