Barnes & Noble Chairman Wants to Buy Company's Bookstores, Website

Monday, 25 Feb 2013 10:09 AM

 

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Barnes & Noble founder and chairman Leonard Riggio has told the book seller he is going to try to buy the company's retail business.

The news sent shares up more than 15 percent.

Riggio disclosed in a regulatory filing Monday morning that he wants to acquire the company's stores and website, but not the business that makes the Nook e-reader or the company's college bookstores. No price was disclosed.

Poll: High Gas Prices: Is it Obama's Fault? Vote Now

Riggio, who founded the company in the 1970s and helped it expand its "big box" presence, is Barnes & Noble's largest shareholder, with nearly 30 percent of the company's shares.

Barnes & Noble said the offer will be considered by a committee of three independent directors. But there is no set timetable for the process.

The New York-based bookseller has been struggling to find its place in the retail landscape as more readers have shifted to electronic books and competition has grown from discount stores and online competitors.

It has invested heavily in its Nook e-book readers and digital library and struck a deal with Microsoft last April to create a Nook subsidiary.

But the Nook faces tough competition from other devices like Apple's iPad Mini, Amazon's Kindle and Google's Nexus tablet.

Earlier this month, the company said it expects Nook media revenue of less than $3 billion. It also anticipates a loss for the unit before interest, taxes, depreciation and amortization to exceed the $262 million loss recorded in its 2012 fiscal year.

This follows a report from the retailer in January that its Nook unit revenue fell 12.6 percent to $311 million during the critical holiday period. Overall sales during the holiday period fell 10.9 percent at bookstores and online compared with a year ago. Barnes & Noble is expected to report third quarter results Thursday.

The filing with the U.S. Securities and Exchange Commission says Riggio will seek to negotiate a price with Barnes & Noble's board and pay for the deal with cash and debt.

Riggio is making the offer in order to facilitate the company's review of its strategic options for separating its Nook business, according to the filing.

Morningstar analyst Peter Wahlstrom said the deal makes sense considering the retail side of the business has been overshadowed by investments needed for the nook business.

Poll: High Gas Prices: Is it Obama's Fault? Vote Now

"The retail business for Barnes & Noble is mature-slash-declining, but it's profitable," he said. "The company has done a good job executing amid a pretty challenging environment."

Barnes & Noble operates 689 bookstores in 50 states and 674 college bookstores.

Shares rose $1.55, or 11.5 percent, to $15.06 in New York trading. Its shares have traded in a 52-week range of $10.45 in mid-April to $26 later that same month.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Twitter Buys Social Data Provider Gnip; Stock Soars

Tuesday, 15 Apr 2014 17:54 PM

Twitter Inc. said on Tuesday it bought social data provider Gnip for an undisclosed amount, signaling that it would take . . .

Intel Reports Improving Margins, Sees Corporate PC Buying

Tuesday, 15 Apr 2014 17:16 PM

Intel Corp., the world's largest semiconductor maker, forecast second-quarter sales that may exceed some analysts' estim . . .

Yahoo's Results Get a Lift from Stake in Alibaba

Tuesday, 15 Apr 2014 17:04 PM

Yahoo! forecast second-quarter sales that met some analysts' estimates, as Chief Executive Officer Marissa Mayer continu . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved