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Originally Posted by fjtorres
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This is a pretty bad sign for B&N. After doing due diligence, Liberty Media...which is run by John Malone (a very sophisticated and successful investor) concluded that it didn't want to purchase B&N at $17 per share. Liberty is doing an investment instead. It did a convert to protect downside also. It just shows a low level of confidence in the business model. Perhaps, Liberty wanted to renegotiate for a much lower price, but the board rejected it...in the long run I think the board will be shown to have made a mistake.
I was actually really surprised Malone was even interested in this company to begin with...the digital strategy is working, for now....the thing is that the more successful digital is the more likely the B&M legacy is doing poorly.
Bricks & Mortor big box book stores are gone within 5 years.