Barnes & Noble receives $1.02 billion buyout offer from Liberty Media Corp

The world's largest bookseller and owner of the largest bookstore chain in the US, Barnes & Noble Inc, yesterday said that it has received a $1.02-billion buyout offer from Liberty Media Corp, 10 months after the bookseller had put itself for sale.

Liberty, based in Englewood in Colorado, run by billionaire John Malone has offered Barnes & Noble $17-a-share in cash, valuing the company at $1.02 billion including $450 million debt.

The offer represents a premium of 20 per cent to Barnes & Noble's closing stock price of $14.11, yesterday .

The offer is contingent on the participation of founding chairman Leonard Riggio, both in terms of his continuing equity ownership and his continuing role in management.

Barnes & Noble said in a statement that the special committee of the board of directors formed to review strategic alternatives will evaluate the proposal along with its legal and financial advisors.

New York-based Barnes & Noble, a Fortune 500 company, operates 705 bookstores in 50 states in the US. Barnes & Noble College Booksellers, a wholly-owned subsidiary of Barnes & Noble, also operates 636 college bookstores serving nearly 4 million students and faculty members at colleges and universities across the country.