Liberty Media — a company that also owns cable networks QVC (a shopping channel) and Starz (focused on broadcasting movies) has made an offer $17 a share, which values the company at approximately $1 billion, for United States bookstore chain Barnes & Noble. The proposed purchase will be up for review by the company shortly and depends, in part, on the agreement of founding chairman Leonard Riggio, to continue with the company in management, as well as maintain his personal equity stake in the company.
Update: As Publishers Lunch notes, “To clear up one misconception in general press coverage today, Liberty Media is not ‘offering’ $1 billion–that is the rough market capitalization for the bookseller, based on a price of $17 a share. As they said in their own press release last night, they expect to acquire 70 percent of the company’s shares. That means they are ‘offering’ $700 million–and also confirms that they expect to buy out everyone but Len Riggio and his beneficiary vehicles. But they also don’t expect Riggio to increase his stake in the company.”