As we previously noted, Liberty Media Corporation, a company chaired by entrepreneur John C. Malone, has submitted a proposal to bid for Barnes & Noble. The offer of $17 per share appraises the company valuation at $1.02 billion. Last week a New York Times article speculated on why Liberty bid for Barnes & Noble.
Here’s more from the article: “So far, most of the reasons given for the interest in Barnes & Noble center on its e-reader, the Nook. Mr. Malone implied that the Nook was a primary reason for Liberty Media’s bid at the company’s shareholder meeting on Monday. Though exact figures are unavailable, Barnes & Noble captured as much as 27 percent of the e-book market with its Nook, according to a Goldman Sachs report.”
The article also offered the theory that Borders’ bankruptcy has also influenced Malone’s offer. Borders’ struggles helped eliminate competition on the brick and mortar side of the business. What do you foresee for the bookseller’s future? (via Publishers Weekly)