Barnes & Noble Receives a Takeover Offer, and the Reason May Surprise You
- by Michael Stillman
Barnes & Noble got out fast with its color Nook.
America's largest chain of bookstores received a major, and perhaps surprisingly strong purchase offer recently. Liberty Media, owner of large shares of Sirius Satellite Radio and QVC Shopping Network among others, made an offer to buy 70% of Barnes & Noble in a deal that values the company at $1 billion. Some had questioned whether the leading bricks and mortar chain could survive at all competing against Amazon.com and others in this quickly evolving world of internet sales and electronic readers. The printed book, as opposed to the digital one, is under enormous pressure, and many believe that though it may not disappear altogether, it will become a comparatively small and shrinking part of the book business. That's not a great prospect for a chain of stores with millions of printed books on their shelves.
The $1 billion offer, a 20% premium over Barnes & Noble's stock price at the time, may seem particularly surprising given their main bricks and mortar rival, Borders, recently filed for bankruptcy. Borders filed earlier this year, and continues to show substantial losses. On the other hand, Barnes & Noble actually saw sales increase at its stores during the first quarter of the year, the first time that has happened since 2007. Does Liberty believe there still is life in their business model? Despite what their offer might seem to imply, this is not so clear at all. Some analysts believe the offer has more to do with a hope on Liberty's part about where Barnes & Noble might go, as opposed to where it has been.
Several commentators have speculated that Liberty's offer has little to do with Barnes & Noble's stores, and everything to do with its Nook electronic reader and its online digital bookstore. While Amazon with its Kindle e-reader reportedly controls around 65% of the market, Barnes & Noble has made substantial inroads with its Nook competitor. Reports indicate the Nook now holds around 25% of the market, a good and growing share of what appears to be a rapidly expanding market.
While at first seeming to be hopelessly behind, B&N made some smart moves with its Nook to gain substantial market share. It enabled the Nook to obtain electronic books from everywhere. Kindle could only accept books sold by Amazon. B&N enabled the Nook to accept books borrowed without cost from libraries. Amazon, finally seeing B&N's advantage, is now belatedly opening up Kindles to library books. B&N offered Nooks at cheaper prices while Amazon attempted to use its market dominance to maintain higher prices longer. B&N then used its stores to allow people to try out and learn how to use Nooks before buying, something the store-less Amazon could not offer. For a company that has suffered badly on a competitive basis for the past decade, Barnes & Noble actually made some fairly smart moves.
In a recent story on the Bloomberg website, Value Investment Principals' analyst Sandy Mehta is quoted as saying, "I think this move is about people accessing books online. The bricks and mortar will go by the wayside." A recent article in the New York Times answered the question what Liberty sees in B&N by saying, "It’s the Nook, Barnes & Noble’s e-book reader." If the analysts have it right, Barnes & Noble's salvation may be that it entered, late but smartly, the digital era, not because it is the largest bricks and mortar bookseller with shelves lined with printed books.
While Liberty has made an offer, it is not yet known whether B&N management will accept. B&N officially offered itself up for sale a few months ago to fend off a takeover attempt by dissident shareholders. However, some analysts have speculated that B&N management will demand a higher price, and whether Liberty is willing to go high enough to satisfy them remains to be seen. Also, Liberty's offer is contingent on B&N founder and 30% shareholder Leonard Riggio maintaining his share and retaining a management role with the company.
Koller, Mar. 26: Wit, Frederick de. Atlas. Amsterdam, de Wit, [1680]. CHF 20,000 to 30,000
Koller, Mar. 26: Merian, Maria Sibylla. Der Raupen wunderbare Verwandelung, und sonderbare Blumennahrung. Nürnberg, 1679; Frankfurt a. M. und Leipzig, 1683. CHF 20,000 to 30,000
Koller, Mar. 26: GOETHE, JOHANN WOLFGANG VON. Faust. Ein Fragment. Von Goethe. Ächte Ausgabe. Leipzig, G. J. Göschen, 1790. CHF 7,000 to 10,000
Koller, Mar. 26: Hieronymus. [Das hochwirdig leben der außerwoelten freünde gotes der heiligen altuaeter]. Augsburg, Johann Schönsperger d. Ä., 9. Juni 1497. CHF 40,000 to 60,000.
Koller, Mar. 26: BIBLIA GERMANICA - Neunte deutsche Bibel. Nürnberg, A. Koberger, 17. Feb. 1483. CHF 40,000 to 60,000
Koller, Mar. 26: HORAE B.M.V. - Stundenbuch. Lateinische Handschrift auf Pergament, Kalendarium französisch. Nordfrankreich (Rouen?). CHF 25,000 to 40,000
Sotheby's Sell Your Fine Books & Manuscripts
Sotheby's Sell Your Fine Books & Manuscripts
Sotheby’s: The Shem Tov Bible, 1312 | A Masterpiece from the Golden Age of Spain. Sold: 6,960,000 USD
Sotheby’s: Ten Commandments Tablet, 300-800 CE | One of humanity's earliest and most enduring moral codes. Sold: 5,040,000 USD
Sotheby’s: William Blake | Songs of Innocence and of Experience. Sold: 4,320,000 USD
Sotheby’s: The Declaration of Independence | The Holt printing, the only copy in private hands. Sold: 3,360,000 USD
Sotheby's Sell Your Fine Books & Manuscripts
Sotheby’s: Thomas Taylor | The original cover art for Harry Potter and the Philosopher's Stone. Sold: 1,920,000 USD
Sotheby’s: Machiavelli | Il Principe, a previously unrecorded copy of the book where modern political thought began. Sold: 576,000 GBP
Sotheby’s: Leonardo da Vinci | Trattato della pittura, ca. 1639, a very fine pre-publication manuscript. Sold: 381,000 GBP
Sotheby’s: Henri Matisse | Jazz, Paris 1947, the complete portfolio. Sold: 312,000 EUR
Swann Printed & Manuscript African Americana March 20, 2025
Swann Printed & Manuscript African Americana March 20, 2025
Swann, Mar. 20: Lot 7: Thomas Fisher, The Negro's Memorial or Abolitionist's Catechism, London, 1825. $6,000 to $9,000.
Swann, Mar. 20: Lot 78: Victor H. Green, The Negro Travelers' Green Book, New York, 1958. $20,000 to $30,000.
Swann, Mar. 20: Lot 99: Rosa Parks, Hand-written recollection of her first meeting with Martin Luther King Jr., autograph manuscript, Detroit, c. 1990s. $30,000 to $40,000.
Swann, Mar. 20: Lot 154: Frederick Douglass, Autograph statement on voting rights, signed manuscript, 1866. $20,000 to $30,000.
Swann, Mar. 20: Lot 164: W.E.B. Du Bois, What the Negro Has Done for the United States and Texas, Washington, circa 1936. $3,000 to $4,000.
Swann Printed & Manuscript African Americana March 20, 2025
Swann, Mar. 20: Lot 263: Susan Paul, Memoir of James Jackson, Boston, 1835. $6,000 to $9,000.
Swann, Mar. 20: Lot 267: Langston Hughes, Gypsy Ballads, signed translation of García Lorca's poetry, Madrid, 1937. $1,500 to $2,500.
Swann, Mar. 20: Lot 274: Malcolm X, Collection from Alex Haley's estate, 38 items, 1963-1971. $4,000 to $6,000.
Swann, Mar. 20: Lot 367: Solomon Northup, Twelve Years a Slave, Auburn, NY, 1853. $2,500 to $3,500.
Swann, Mar. 20: Lot 402: Anna Julia Cooper, A Voice from the South, Xenia, OH, 1892. $2,000 to $3,000.
![Koller, Mar. 26: Wit, Frederick de. Atlas. Amsterdam, de Wit, [1680]. CHF 20,000 to 30,000](https://ae-files.s3.amazonaws.com/AdvertisementPhotos/2214ca86-0dc9-47be-8bc5-99d9f1c2aa1f.jpg "<b>Koller, Mar. 26:</b> Wit, Frederick de. Atlas. Amsterdam, de Wit, [1680]. CHF 20,000 to 30,000")
![Koller, Mar. 26: Hieronymus. [Das hochwirdig leben der außerwoelten freünde gotes der heiligen altuaeter]. Augsburg, Johann Schönsperger d. Ä., 9. Juni 1497. CHF 40,000 to 60,000.](https://ae-files.s3.amazonaws.com/AdvertisementPhotos/b8b6a630-a01a-4220-ae77-38540d6c898d.jpg "<b>Koller, Mar. 26:</b> Hieronymus. [Das hochwirdig leben der außerwoelten freünde gotes der heiligen altuaeter]. Augsburg, Johann Schönsperger d. Ä., 9. Juni 1497. CHF 40,000 to 60,000.")
