As was discussed in this
thread, Barnes and Noble reported unsettling sales and earnings performance at the end of Apr, its fiscal year end. Its Nook business was worth $250 million in sales in the last quarter but its selling expenses left it with a loss for the period.
A year ago, the Riggio family which owns 30% of the company fell into a bitter dispute with an investment fund headed by Ron Burkle which owns 20% of the company. The Riggios won but Burkle still holds his share. For the next several months, the company was officially up for sale but no serious bidder emerged. The company withdrew the offer to sell.
Finally, in late Spring, John Malone of Liberty Media (QVC and the Home Shopping Network among other interests) announced he'd be willing to invest $1 billion to buy the 70% not owned by the Rigio's provided the Rigio's stayed on as owners and management (B&N having done so well ...). But time ticks by and, despite both principals saying nice things about each other in early July, this week reports surfaced that Liberty Media was having
cold feet. The deal was worth $17 a share; today the stock closed at $15.66 and some analysts are openly pegging the true value at around $14. Still, they are definitely
still talking.
Next stop will be late Aug / early Sep when the B&N board of directors next meets formally and presumably will be asked to approve the deal or ask for modifications. And, Borders will have closed for good by then, removing 600 stores that were competing directly with B&N this time last year.
With the Nook Touch and Nook Color business continuing to grow, even at a reduced share price, Malone's bid would be most welcome. The potential for an infusion of working capital might put some real umphh under company for the first time in several years.