Barnes & Noble has been acquired by the hedge fund Elliott Advisors for $638 million, a move that has momentarily calmed fears among publishers and agents that the largest bookstore chain in the United States might collapse after one of the most tumultuous periods in its history.
The sale was announced Friday morning after months of speculation over the future of Barnes & Noble. The acquisition follows Elliott’s purchase of the British bookstore chain Waterstones in June 2018. James Daunt, the chief executive of Waterstones, will also act as Barnes & Noble’s C.E.O. and will be based in New York.
It marks a surprising new chapter in the 40-plus-year history of Barnes & Noble, which evolved from a single Manhattan bookstore in 1971 and grew into a national fleet of superstores. In the 1990s, Barnes & Noble was often vilified as a greedy corporate giant that slashed book prices to lows that its competitors could not match and helped put struggling independent booksellers out of business across the United States.
But in recent years, Barnes & Noble has been decimated by the strength of online booksellers like Amazon and struggled to make a profit. The company has closed more than 150 stores in the last decade or so, leaving it with 627.
“The loss of Barnes & Noble would have been catastrophic for the industry,” said Carolyn Reidy, president and chief executive of Simon & Schuster.
Mike Shatzkin, the chief of the Idea Logical Company, a book industry consulting firm, said a sale was probably the best outcome for the company’s future.
Thank you for your patience while we verify access. If you are in Reader mode please exit andlog intoyour Times account, orsubscribefor all of The Times.
Thank you for your patience while we verify access.
In August 2019, Elliott Investment Management acquired the company for approximately $683 million with James Daunt, the managing director of London-based Waterstones Booksellers Ltd
Waterstones Booksellers Ltd
Waterstones Booksellers Limited, trading as Waterstones (formerly Waterstone's), is a British book retailer that operates 311 shops, mainly in the United Kingdom and also other nearby countries.
In the summer of 2019, Barnes & Noble was bought by the hedge fund Elliott Management for $683 million, almost half again what stock market investors thought it was worth. Upon taking over, Elliott installed James Daunt as Barnes & Noble CEO.
Elliott Investment Management, the New York hedge fund that owns Waterstones, acquired Barnes & Noble in 2019 for $683m, along with the debt the company had accumulated over the years.
Barnes & Noble has been acquired by the hedge fund Elliott Advisors for $638 million, a move that has momentarily calmed fears among publishers and agents that the largest bookstore chain in the United States might collapse after one of the most tumultuous periods in its history.
Wholesale third quarter gross profit was $8.0 million, or 21.5% of sales, compared to $6.7 million, or 17.1% of sales, in the third quarter of 2023. The gross margin rate increased in the third quarter of 2024 primarily due to lower returns and allowances and lower warehouse costs, partially offset by higher markdowns.
In August 2019, Elliott Investment Management acquired the company for approximately $683 million with James Daunt, the managing director of London-based Waterstones Booksellers Ltd., becoming CEO. James Daunt was to become CEO of both Waterstones and Barnes & Noble and was to relocate from London to New York.
After years on the brink of extinction, the book chain is planning to open some 30 new stores this year. Many are returning the retailer to areas it previously abandoned. In a few, Barnes & Noble is even taking over former Amazon bookshops.
In August of 2019, Barnes & Noble was acquired by Elliott Advisors (UK) Limited (“Elliott”) and taken private. Elliott's acquisition of Barnes & Noble followed its June 2018 acquisition of Waterstones, the largest retail bookseller in the United Kingdom.
As a privately held company, Barnes & Noble doesn't report financial results, but it's clear that it's no longer near death. Daunt says, store managers now understand their customers better. Whereas the chain used to send 25% of its Unbought books back to the publisher, now the return rate is down to 9%.
Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.
Today Bridgewater is the largest hedge fund in the world and Dalio has a personal fortune of approximately $19 billion. The fund serves institutional clients such as pension funds, foreign governments and central banks, as well as charitable foundations, family offices and high net worth individuals.
And it's doing well. After years on the decline, Barnes & Noble's sales are up, its costs are down — and the same people who for decades saw the superchain as a supervillain are celebrating its success.
(NYSE:BKS, “Barnes & Noble”) announces today that it has entered into a definitive agreement to be acquired by funds advised by Elliott Advisors (UK) Limited (“Elliott”) for $6.50 per share in an all-cash transaction valued at approximately $683 million, including the assumption of debt.
The Company has approximately 600 bookstores across the United States, as well as its online bookstore at BN.com, the NOOK® Digital business which offers both eBooks and an audio book subscriptions service, the SparkNotes educational service, stationery and gift retailer Paper Source, and the publisher Union Square & ...
Address: 747 Lubowitz Run, Sidmouth, HI 90646-5543
Phone: +99513241752844
Job: Design Supervisor
Hobby: Digital arts, Lacemaking, Air sports, Running, Scouting, Shooting, Puzzles
Introduction: My name is Delena Feil, I am a clean, splendid, calm, fancy, jolly, bright, faithful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
