Liberty Media said it would purchase a stake in Barnes & Noble for $204 million. The media giant was seen as a potential savior for the bookseller that went up for sale last year, but Liberty has declined to outright acquire the company.
Barnes & Noble’s stock price faltered yesterday as investors voiced concern that Liberty might not acquire the entire company. Liberty, on the other hand, had its own concerns earlier this summer when it began investigating the financial viability of a B&N takeover in an uncertain economic climate.
Liberty’s majority stake in Barnes & Noble is the latest addition to the company’s extensive portfolio, which includes QVC, Starz Entertainment, and the Atlanta Braves baseball team. Reportedly, Liberty’s main interest in Barnes & Noble is the Nook, the company’s e-reader device, which trails close behind Amazon’s Kindle in sales. “We could not have found a better strategic investor than Liberty Media. Their investment is a strong endorsement of our overall business, and the additional capital will further fuel the explosive growth of our digital strategy,” B&N’s chairman Leonard Riggio said.