With the first phase of Barnes & Noble’s search for a buyer expected to wrap-up roughly by the end of this month, chairman Len Riggio filed a letter with the SEC that contains a number of pledges to a fair and open process. Why now? Well you could see the letter as addressing some of Ron Burkle’s concerns that the Barnes & Noble board conduct a fair and above-board search for bidders that does not favor Riggio. Some may also infer that a bid with Riggio’s participation is imminent, but of course there’s nothing concrete to that effect in the […]
Finance
OverDrive Takes Outside Investment
Private equity firm Insight Venture Partners has made “a major investment” in digital content distributor OverDrive, which the company will use to “provide additional resources” and “help fuel growth.” Insight managing director Larry Handen says in the announcement, “We are particularly excited about OverDrive’s strong growth, market leadership, and commitment to customers. Our investment coincides with the 20th consecutive quarter of continuous profitability. This is a tribute to the company’s management team.” With a capital base of $3 billion, Insight focuses on software, Internet and data services companies. OverDrive founder and CEO Steve Potash adds, “The combination of Insight’s focus […]
Proxy Fight, The Sequel: Barnes & Noble Sets November Vote on Poison Pill
Barnes & Noble filed papers with the SEC yesterday announcing a special shareholders meeting and vote on November 17. The agenda is to review and vote on the poison pill “rights agreement” first adopted by the board in February following the increase in stock purchases by Ron Burkle’s Yucaipa companies, and modified on June 23. The company writes to shareholders that “the rights agreement does not prevent change of control transactions, but, rather, encourages potential acquirors [stet] of control of the company to approach the board and enables the board to negotiate a transaction that is in the best interests […]
Amazon Does Indeed Acquire BuyVIP
As predicted in reports earlier this week, Amazon announced a deal to acquire Spain-based BuyVIP.com, which claims over six million members in countries including Spain, Italy and Germany. Reported previously as selling for $96.5 million (though not confirmed, among BuyVIP.com’s owners is Bertelsmann Digital Media Investments. In the mode of Gilt Groupe, BuyVIP sells well-known fashion and lifestyle products through limited-time offers at deep discount. Amazon’s vp of European retail Greg Greeley says, “BuyVIP.com is an excellent complement to Amazon’s European business and will provide another unique way for Amazon customers to find and discover unique and compelling products.”Announcement
Counterpoint to Close New York Office
Counterpoint will close its New York editorial office at the end of October, with editorial director Denise Oswald and associate editor Anne Horowitz losing their full-time positions, though “both agreed to complete the editorial work” on books under contract on a freelance basis. Head of Counterpoint Charlie Winton says, “As everyone in the book business is aware, the industry is going through a very challenging period. It has become necessary for Counterpoint to consolidate its editorial effort in Berkeley.” They will continue the Soft Skull Press imprint from the California office, and say they “will honor all of the future […]
Analysts Split on Whether to Upgrade or Downgrade B&N Stock
Today Goldman analysts downgraded B&N stock from Neutral to Sell and cut the stock price target from $15 to $13, saying that “following management’s recent proxy victory we believe a transaction is less likely.” Yesterday, however, Channel Trend Inc. went the other way, upgrading company stock from Unfavorable to Neutral. The share price dropped to $15.87 and is currently down in pre-market trading.Street Insider