The founder of Barnes & Noble plans to bid for the retail business of the bookstore chain he started 40 years ago, as the company struggles to deal with the changing competitive landscape.
On Monday, Leonard Riggio told the company’s board that he will make an offer for Barnes & Noble Booksellers, barnesandnoble.com and other retail assets. The proposal would not include the e-book division, Nook Media.
Like many retailers, Barnes & Nobles is dealing with waning profit in its core business, as online players and other competitors gain marketshare. The company recently warned that earnings in the latest quarter would be weak, with losses rising in its Nook Media division.
Mr. Riggio, who owns nearly 30 percent of Barnes & Noble, plans to negotiate the price with the board, according to a regulatory filing. The proposal is expected to be mainly in cash.
It is the boldest move yet by Mr. Riggio to try and save the company he built into the nation’s biggest brick-and-mortar bookseller. He has fended off challenges from the likes of the billionaire Ronald Burkle, arguing in large part that the company was well-positioned in the future by betting on the Nook and digital books.
Others believed in the promise of the e-reader as well. Last year, Microsoft paid $300 million for a 17.6 percent stake in the Nook business, valuing it then at $1.7 billion. The technology titan also secured Barnes & Noble’s commitment to produce an e-reader app for its Windows 8 operating system.
Barnes & Noble said in a statement that it has formed a special board committee comprised of three directors — David G. Golden, David A. Wilson and Patricia L. Higgins — to consider Mr. Riggio’s proposal. The trio will be advised by Evercore Partners and the law firm Paul, Weiss, Rifkind, Wharton & Garrison.
The retailer’s board had already been weighing whether to spin off its Nook unit.
DealBook: Barnes & Noble Founder Leonard Riggio to Bid for Bookstore's Retail Business
This article
DealBook: Barnes & Noble Founder Leonard Riggio to Bid for Bookstore's Retail Business
can be opened in url
http://drummernewster.blogspot.com/2013/02/dealbook-barnes-noble-founder-leonard.html
DealBook: Barnes & Noble Founder Leonard Riggio to Bid for Bookstore's Retail Business
