Barnes & Noble

History

2019: Elliott Management purchased Barnes & Noble for $683 million

On June 7, 2019 it was announced sale of Barnes & Noble to a hedge fund of Elliott Management for $683 million. Will pay shareholders of producer of eReaders $6.5 for each security belonging to them that is 42% more than a quotation rate to closing of the exchange on June 5 — a day before emergence in media of rumors about the preparing transaction with Elliott Management.

Execute everything that is necessary for a design of sale of Barnes & Noble, it is planned in the third quarter 2019. At first regulators and shareholders should approve the transaction.

The producer of the Barnes & Noble eReaders sold for $683 million

After closing of the transaction process of merge of Barnes & Noble to other network of Waterstones bookstores which Elliott Management purchased in the summer of 2018 will begin. By the end of the 2018th Barnes & Noble and Waterstones had 627 and 293 shops respectively. Despite merge, networks will work everyone under the brand.

According to experts, it will be heavy to Barnes & Noble to be recovered after the long recession caused by keen competition from Amazon and other online stores. The CEO of consulting company Idea Logical Company (specializes in the book industry) Mike Shatzkin considers creation of any single large retail network "the concept of the 20th century" which was eclipsed by the Internet.

Does not surprise me that the management of Barnes & Noble did not come to such conclusion because they constructed the status on creation of big shops. And I am not sure that Waterstones will lead them to other approach — the expert is sure.

According to James Daunt (James Daunt) who will head Barnes & Noble along with Waterstones, traditional bookstores faced "frightening calls of the Internet and digital technologies — difficult enrollment of difficulties for which for simplicity and for some obvious reasons we blame Amazon".

Since the beginning of 2019 on June 7 of a stock of Barnes & Noble fell in price of 25%, and for the last five years the company lost more than $1 billion market capitalization.^[1]

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