Who ever thought $1 billion would be hard to come by?
You may recall that Liberty Media
The latest reports are now further dimming the possibility of an all-out acquisition due to financing constraints, in favor of Liberty making an investment instead. The possible deal had previously been scaled down to Liberty taking a 70% stake, but yesterday’s reports failed to elaborate on how much Liberty Media may invest. That uncertainty has led disappointed shareholders to punish the stock as much as 12% yesterday on the news. Liberty Media’s own recent earnings press release included a vague statement that it is “seeking to acquire a significant stake in Barnes & Noble.”
I’m with fellow Fool Rick Munarriz: This deal doesn’t make sense. Retail bookstores are going by the wayside. At least B&N is trying to keep up with Amazon.com
Anything short of a full acquisition is only going to prolong the pain for B&N shareholders. Since it seems like that’s off the table, your investing dollars are better suited somewhere else.