Barnes & Noble to Go Private

Leading bookseller, Barnes & Noble, Inc. (NYSE: BKS) is being bought in a USD 683 Million deal by private equity firm, Elliot Management. The all-cash transaction valued the Company’s stock at USD 6.50 a share, a premium of about 42% over the retailer’s stock price.

Elliot Management’s acquisition of Barnes & Noble comes at the heels of its June 2018 purchase of British book retailer, Waterstones. “I look forward greatly to working with the booksellers at Barnes & Noble,” said James Daunt, who will assume the role of CEO at the Company. “Physical bookstores the world over face fearsome challenges from online and digital. We meet these with investment and with all the more confidence for being able to draw on the unrivalled bookselling skills of these two great companies. As a place in which to choose a book, and for the sheer pleasure of visiting, we know that a good bookstore has no equal.”

Barnes & Noble has struggled in recent years as it fights e-commerce giant, Amazon.com, Inc. (NASDAQ: AMZN). Both companies launched e-readers just two years apart. Amazon released the Kindle in 2007, while Barnes & Noble introduced the NOOK Book in 2009. The NOOK however, failed to compete.

Barnes & Noble announced a quarterly dividend of USD 0.15 a share, payable on August 2. The Company will also report its fiscal 2019 fourth quarter and year-end financial results on June 19.

2 Comments
  1. Robert Lee 3 months ago
    Reply

    Some deals in the retail sector would be a nice boost. But, who wants to add risk now??

    Kudos to Elliott for the $BKS deal. I was just in my local store yesterday and it was humming…of course, maybe it’s a popular Sunday afternoon hangout??

  2. Craig Dubowsky 3 months ago
    Reply

    No debt is key. Invested behind a screen for cash gen and no debt from Mar 2016 – Aug 2018. Theory was lights out. Practice was also lights out. Like TKO. I lost ~60% on $BKS

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