Liberty Media Corp. said Thursday that it is cutting its stake in Barnes & Noble Corp., sending the bookseller's shares down sharply.
Liberty Media Corp. said Thursday that it is cutting its stake in Barnes & Noble Corp., sending the bookseller’s shares down sharply.
The investment company controlled by billionaire investor John Malone gave Barnes & Noble, the largest specialty bookstore chain, a life line in 2011 when it bought 12 million Barnes & Noble shares at $17 apiece. The shares represented a 17 percent stake in the company.
But now Liberty says it is selling the majority of its shares to institutional buyers. It will keep 10 percent of its original investment and lose its two board seats.
The change comes as Barnes & Noble has been trying to turn itself around as competition from discount stores and online retailers toughens, and as consumers shift away from traditional books to digital formats. The chain has invested heavily in its Nook unit, but that division has not been profitable.
- Seahawks' Marshawn Lynch announces retirement in his own, unique fashion
- With Marshawn Lynch retired, what will Seahawks do with money they save?
- Seahawks' Russell Wilson writes a thank-you letter to Peyton Manning
- Black Sabbath calls it a night at the Tacoma Dome — for good
- Marshawn Lynch’s retirement announcement wasn’t classy, but it was perfect
Most Read Stories
In its most recent earnings report, Barnes & Noble reported a third-quarter profit as cost cuts helped offset declining revenue.
Barnes & Noble Chairman Leonard Riggio says the reduced Liberty stake gives his company more flexibility to pursue strategic options.
Liberty had initially offered $1 billion in 2011 to buy Barnes & Noble, but instead made the investment.
Shares fell $2.89, or 13.1 percent, to $19.22 in midday trading Thursday. The stock had been up 48 percent this year.