Barnes & Noble Acquired by Elliott Management for $683M
Hedge fund Elliott Management announced Friday that the firm will acquire bookseller Barnes & Noble for $683 million, reports CNBC. The acquisition is set to close in the third quarter of 2019, and will be structured as a merger. Barnes & Noble has faced increasing pressure from Amazon.com as well as independent booksellers in recent years, leading to a nearly $1 billion loss in market value over the past five years. Elliott Management acquired Britain's largest bookseller, Waterstones, last year.
Total Retail's Take: Barnes & Noble has been in a downward spiral following years of sluggish sales and increasing competition in the bookselling space, primarily from Amazon.com. Elliott Management's acquisition of Barnes & Noble likely saved the retailer from a bankruptcy filing, however, there are plenty of questions around how the investment firm plans to return Barnes & Noble to profitability. The growth plan needs to be aggressive and focus on getting customers back into physical storefronts. Barnes & Noble has already begun transitioning to stores with a smaller footprint, reducing cost per location. This tactic seems to be a step in the right direction, as the company's 2018 holiday sales rose 1.1 percent year-over-year. Expect more change for Barnes & Noble in the near future under the leadership of Elliott Management.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
