Liberty Media Offers to Pay $17 Per Share for Barnes & Noble Stock

May 19, 2011
J. Webster
Comments Off on Liberty Media Offers to Pay $17 Per Share for Barnes & Noble Stock

This is your chance, time to GET OUT quick Barnes & Noble stock holders.  The stock has popped after hours nearly 25%, as shorts are probably getting squeezed, right now the stock sits at $17.60.  If you’re a shareholder of BKS your prayers have been answered – and just before the world is supposed to end on May 21st.

Sure, the stores look nice and pretty and it’s fun to skim through books at their stores and then go buy them on Amazon.  That is understandable. But, their business model is dead. They are just not going to be able to make money in the long run with big retail stores.  It is over. Apple. Google. Those big players are also going to make inroads into the eBook platform. So, this is your lucky day.  Take $17 per share and be done with it.

Barnes & Noble

The bookstore, as it once was, as a giant seller of every book you could every want is dead, gone, buried.  Amazon has replaced those stores and eBooks will eventually replace books themselves. As a shareholder of a book company like BKS, you don’t want to see your shares become worthless, a penny stock, like Borders did before they filed for bankruptcy protection. Get out now, while you still can, you’ve been given a second chance.

It’s been a good run too, as BKS was down to $8 per share just a month or so ago.

Here’s the news from Reuters:

Barnes & Noble, Inc. announced that the Special Committee of its Board of Directors has received a proposal from Liberty Media to acquire the Company at a price of $17 per share in cash. The proposal is subject to, among other things, the signing of a definitive purchase agreement, customary closing conditions, such as the receipt of regulatory and shareholder approvals, and receipt of acceptable debt financing. The proposal states that it is contingent on the participation of founding chairman Leonard Riggio, both in terms of his continuing equity ownership and his continuing role in management.

Who is Liberty Media you might ask? And what do they see in BKS that others have not? Here’s some info from their company website:

Liberty Media owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to three tracking stock groups: (1) the Liberty Interactive group (Nasdaq: LINTA, LINTB), which includes Liberty Media’s interests in QVC, Provide Commerce,, Celebrate Interactive,, Evite, and Expedia, (2) the Liberty Starz group (Nasdaq: LSTZA, LSTZB), which includes Liberty Media’s interest in Starz, LLC, and (3) the Liberty Capital group (Nasdaq: LCAPA, LCAPB), which includes all businesses, assets and liabilities not attributed to the Interactive group or the Starz group including its subsidiaries Atlanta National League Baseball Club, Inc., and TruePosition, Inc., Liberty Media’s interest in SiriusXM Radio,Inc., and minority equity investments in Time Warner Inc. and Live Nation.

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