Why MongoDB, Zumiez, and Barnes & Noble Jumped Today

Investment firm to buy Barnes & Noble in $683M deal

Investment firm to buy Barnes & Noble in $683M deal

That report was vindicated Friday morning when B&N announced that it had agreed to be acquired by the hedge fund for $6.50 a share in cash in a deal valued at $683 million, including debt.

Waterstones CEO James Daunt will assume the same position at Barnes & Noble once the deal is closed.

Elliott was careful to note that "each bookseller will operate independently" - but added that "they will share a common CEO and benefit from the sharing of best practice between the companies". The stock jumped 29 percent on Thursday on rumors this deal could come soon.

Barnes & Noble's reported sales growth of 1.1% for the holiday quarter ended January 26 (in stores that had been open at least a year.) That was the company's best quarterly sales growth in several years. During the same period previous year, the business earned ($0.87) earnings per share.

Waterstones has since gone on to acquire fellow book retailer Foyles.

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"I am also confident that James Daunt has the leadership ability and experience necessary to lead this great organisation". "While this could improve profitability, the competitive landscape as a whole remains tough, so the success of this acquisition will depend on how Elliott can make BKS relevant again so that it can effectively compete with value and online players".

Barnes & Noble is the nation's largest bookstore chain with 627 stores in 50 states. The retailer still generates cash - sales were nearly $3.6 billion previous year - and the little outstanding debt on its balance sheet isn't due until 2023.

"We are pleased to have reached this agreement with Elliott, the owner of Waterstones, a bookseller I have admired over the years", Leonard Riggio, the founder of Barnes & Noble's modern iteration and still its chairman, said in a statement released Friday. In October, the company said it was considering a sale to several interested parties, including Riggio.

Gurus with large holdings in Barnes & Noble include Lee Ainslie (Trades, Portfolio), Jim Simons (Trades, Portfolio), Philippe Laffont (Trades, Portfolio) and Chuck Royce (Trades, Portfolio). Elliott's United Kingdom subsidiary, Elliott Advisors (UK), is making the acquisition. Zumiez also reversed a year-ago loss with a modest profit for the period, and CEO Rick Brooks said that its efforts to cut back on promotional discounting paid off with stronger margin.

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