Barnes & Noble Shares Get Burned After Liberty Media Sells Out
NEW YORK (TheStreet) -- Shares of Barnes & Noble are falling in Friday trading, one day after Liberty Media, one of the bookseller's biggest investors, announced it is selling 90% of its stake in the company.
Shares of Barnes & Noble
Liberty said it is selling 90% of its approximately 17% stake in Barnes & Noble to institutional buyers and will lose its two board seats. The sale becomes final on April 8.
The investment company controlled by billionaire investor John Malone acquired its stake in 2011 when it paid $204 million for preferred shares that converted to 12 million Barnes & Noble shares at $17 apiece. Liberty initially offered $1 billion to acquire Barnes & Noble that year.
Barnes & Noble has been struggling, especially in its Nook segment, as it faces strong competition from rivals like Amazon. The company reported that sales of its Nook tablet fell 50% in its fiscal third quarter.
At last check, shares of Barnes & Noble were falling 4.5% to $18.26.
In New York, I'm Brittany Umar for TheStreet.
Written by Brittany Umar in New York.