Investment firm bids for ailing Barnes & Noble

Feb 21, 2014

An investment firm offered Friday to take a controlling stake in the troubled US bookseller Barnes & Noble, sending the share price soaring.

G Asset Management (GAM) said in a statement it believes Barnes & Noble, which also makes the Nook electronic readers and tablets, is "substantially undervalued in its current form."

GAM proposes to acquire 51 percent of Barnes & Noble at $22 a share, valuing the company at $1.3 billion.

It said it would "alternatively" buy 51 percent of the Nook segment at $5 a share and added that it was "extremely confident that if the Nook segment is separated from the profitable retail and college business, substantial shareholder value would be created."

GAM said it previously made a bid of $20 a share for B&N and has said that the money-losing Nook segment should be spun off from the college and retail segment.

It said it sees "substantial potential value" in the B&N textbook rental arm and digitization of its college bookstore.

Barnes & Noble shares jumped 6.3 percent to $17.85 in afternoon trading.

A Barnes & Noble spokesman said the company had received the offer but declined to comment further.

The bookseller, which releases quarterly results next week, has been struggling for years. It lost $73.8 million in the first six months of its fiscal year, with revenues down eight percent.

Nook, which has had investment from Microsoft, is a rival to the Amazon Kindle but has consistently lost money. Barnes & Noble has discussed spinning off the Nook division and recently announced job cuts in the unit.

Explore further: Starbucks: Computer outage disrupts sales in US, Canada

Related Stories

Microsoft eyes full control of Nook

May 09, 2013

Shares in Barnes & Noble surged Thursday after a report that Microsoft was preparing a $1 billion bid for the bookseller's Nook Media digital assets.

B&N, Microsoft team up on Nook, college businesses

Apr 30, 2012

(AP) -- Barnes & Noble Inc. and Microsoft Corp. are teaming up to create a new Barnes & Noble subsidiary that will house the digital and college businesses of the bookseller and include a Nook application for Windows 8.

Barnes & Noble unveils $199 Nook Tablet

Feb 21, 2012

US bookseller Barnes & Noble unveiled a new version of its Nook tablet computer Tuesday, a device with the same $199 price tag as Amazon's Kindle Fire.

Recommended for you

Capgemini to buy IGATE in $4 billion US expansion push

2 hours ago

French IT services and consulting company Capgemini said Monday it was buying New Jersey-based IGATE for $4 billion (3.7 billion euros), boosting its US-generated business to 30 percent of its total activity.

How smart are the mobile shoppers who use smartphones?

Apr 24, 2015

In the age of the smart phone, how smart are the mobile shoppers who use these almost ubiquitous devices? A study from South Korea published in the International Journal of Mobile Communications hopes to answer that questi ...

India's Infosys gives muted earnings, stock falls

Apr 24, 2015

Indian software giant Infosys Technologies saw its shares dip nearly seven percent Friday after it reported a single digit rise in yearly revenues and also missed quarterly profit estimates.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.