Breaking News
FONT-SIZE Plus   Neg
Share SHARE

WSJ: Barnes & Noble Chairman Mulls Bid For Bookstore Chain

RELATED NEWS
Trade BKS now with 

Barnes & Noble Inc.'s (BKS: Quote) founder and chairman, Leonard Riggio, has expressed an interest in buying out the company consumer-bookstore chain, the Wall Street Journal reported Sunday, citing people familiar with the matter. Riggio's reported move boosts speculation that the bookstore chain and Nook eReading software provider could be split into two.

Riggio, who holds about 30 percent of the company's stock and is its largest shareholder, has reportedly told of his interest to Barnes & Noble's board of directors without starting a formal process. He is said to have made a preliminary proposal, but might make a formal offer this week.

If Riggio proceeds with his plan, Barnes & Noble's 689 retail stores would reportedly be taken private and separated from the company's college-store chain as well as its Nook e-reader and tablet business. Riggio is said to be planing to spin out the unit that makes the Nook tablet.

According to the WSJ, the retail stores could be valued at three or four times earnings before interest, tax, depreciation and amortization or Ebitda in a sale, or about $1 billion.

Barnes & Noble said in early 2012 that it will explore strategic alternatives for the Nook digital business. The company is looking to spinoff the Nook business into a separate company in order to unlock its value due to the increased significance of the Nook business platform. A special committee of the board, advised by Evercore Partners Inc. (EVR), has been working on the separation plan.

In late November 2012, Barnes & Noble reported a turnaround to profit in the second quarter as higher sales at the Nook segment, including digital content sales, helped offset lower sales at its retail segment. At that time, Barnes & Noble said that Nook unit sales doubled over the four-day Black Friday weekend across all channels, citing preliminary data.

Barnes & Noble is scheduled to report its financial results for the third quarter later this week. Analysts expect the company to report earnings of $0.54 per share for the quarter on revenues of $2.40 billion.

BKS closed Friday's trading at $13.51, up $0.32 or 2.43 percent on a volume of 1.24 million shares.

Register
To receive FREE breaking news email alerts for Barnes & Noble Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that it swung to a second quarter loss, hurt by higher costs and expenses even as revenue surged 47%. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. Kraton Performance Polymers, Inc. (KRA), Wednesday reported second-quarter net income of $11.1 million or $0.33 per share, up from $3.8 million or $0.12 per share last year. Adjusted earnings improved to $0.46 per share from $0.15 per share last year. Revenues for the quarter dropped to $323.8... Organic grocer Whole Foods Market, Inc. said Wednesday after the markets closed that its third quarter profit rose 6.3% from last year, as same-store sales increased 3.9%. The company's quarterly earnings per share also came in above analysts' expectations, but its quarterly sales fell shy of analyst' forecast.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.