Barnes & Noble Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Barnes & Noble (NYSE: BKS  ) fell more than 12% in early trading today and remain down more than 10% as of this writing. A report in The Financial Times says that Liberty Interactive (Nasdaq: LINTA  ) may be unable to purchase the bookseller after all.

So what: In May, Barnes & Noble said it had come to terms with Liberty on a $1 billion acquisition. Now, the Times says John Malone's media empire faces financing constraints that would put the kibosh on the deal as intended.

Now what: But the story doesn't end there. According to the Times, Liberty is mulling an outside investment as an alternative. Either way, the story paints a dim view of B&N's prospects: no other suitors and a bankrupt competitor in Borders Group. Where do you stand on this stock? Would you use the sell-off as a buying opportunity? Weigh in using the comments box below.

Interested in more info on Barnes & Noble? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On August 17, 2011, at 9:23 PM, amedici wrote:

    Retail book sellers are a dinosaur. I'm 62 and haven't been to a brick and mortar facility in years. The only exception might be the specialty retailer who deals in collectible and out of print volumes. And eBay could put them under.

  • Report this Comment On August 18, 2011, at 7:47 AM, dbtheonly wrote:

    Heck amerdici,

    Physical books may be obsolete given the growth of the electronic medium.

  • Report this Comment On August 18, 2011, at 8:00 AM, David369 wrote:

    Think of the stories people will tell their kids "yeah, I remember when there were real books you could walk into stores and see thousands of them".

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