Economy

Once a book selling giant, Barnes & Noble sold to hedge fund

Once a book selling giant, Barnes & Noble sold to hedge fund

Elliott bought the United Kingdom bookseller Waterstones in June 2018.

James Daunt, CEO of Waterstones, will assume the role of Barnes & Noble CEO following the completetion of the deal. He said that he planned to split his job between the United States and Britain, but would be spending a "substantial" amount of time in NY.

Barnes & Noble Inc said on Friday it would be bought by hedge fund Elliott Management Corp for $475.8 million, marking the end of the once-dominant USA book retailer as a public company after years of falling sales.

Barnes & Noble stock shot up 30 percent to $5.96 after the Journal reported a deal was imminent.

Elliott will pay $6.50 per share for all shares of the company. The company's growing success took a hit following the launch of Amazon.com Inc, which started as an online marketplace for books and also as more Americans shifted to non-reading activities like videogames.

And he sees advantages for Barnes and Noble in the fight with Amazon, where the customer interaction is limited to buying things online.

But Barnes & Noble has suffered.

More news: Chillicothe VA launches new care options

Barnes & Noble said Waterstones, which was bought by Elliott a year ago, has successfully restored itself to sales growth and sustainable profitability under Daunt.

The sign for a Barnes & Noble bookstore hangs above the entrance to one of its locations in Brooklyn earlier this year.

Both chains will operate independently but will share best practices in addition to the same CEO.

"Our investment in Barnes & Noble, following our investment previous year in Waterstones, demonstrates our conviction that readers continue to value the experience of a great bookstore", Paul Best, Elliott's head of European Private Equity said. The deal is expected to close in the third quarter of this year.

So it may be the end of an era for Barnes & Noble.

Parneros has rejected Barnes & Noble's accusations.