A special committee of Barnes & Noble’s board of directors has received a proposal from Liberty Media to acquire the company at a price of $17 per share in cash, according to a press release.
The proposal is subject to the signing of a definitive purchase agreement, customary closing conditions, such as the receipt of regulatory and shareholder approvals, and receipt of acceptable debt financing.
Barnes & Noble cautioned its shareholders and others considering trading in its securities that the proposal from Liberty Media has not yet been evaluated by the special committee and its advisors. There can be no assurance that any definitive offer to acquire the company will be made and consummated.
The company said it does not intend to comment further regarding the proposal or the company’s evaluation of strategic alternatives, unless a specific transaction is recommended by the special committee.
In February, Barnes & Noble reported total sales of $2.3 billion for its fiscal third quarter 2011, a 7 percent increase compared to the same quarter of 2010. Online and bookstore sales for the quarter benefitted from strong consumer demand for the company’s Nook e-reader products and related accessories, as well as the company’s expanded Toys & Games selection.
The company has forced the convergence of the tablet and e-reader market with its disruptive Nook Color touchscreen e-reader. Just this month, Barnes & Noble rolled out a firmware update that adds a curated version of the Android Market, where users can download select apps to the device.
Shares of Barnes & Noble stock were trading up almost 29 percent in early morning trading, at $18.40.