Barnes & Noble gets $1 billion buyout bid

@CNNMoney May 20, 2011: 9:30 AM ET
Liberty Media has offered to buy Barnes & Noble for nearly $1 billion.

Liberty Media has offered to buy Barnes & Noble for nearly $1 billion.

NEW YORK (CNNMoney) -- Bookseller Barnes & Noble says it has received a nearly $1 billion buyout offer from Liberty Media, the parent of cable network QVC.

New York-based Barnes & Noble said late Thursday that Liberty is offering to pay $17 a share for the company, which had 57 million shares outstanding according to its most recent earnings report.

Barnes & Noble's (BKS, Fortune 500) stock shot up 25% in premarket trading, pushing the stock above $17 a share -- an indication that investors believe that negotiations between the bookseller and Liberty could produce an even higher buyout price.

The company said a special committee of its board is evaluating the proposal, which is contingent on participation by founding Barnes & Noble chairman Leonard Riggio.

Barnes & Noble is the largest operator of traditional book stores, with 705 stores in 50 states.

Liberty, run by John Malone, includes such properties as the Starz premium cable network and the Atlanta Braves baseball team.

Booksellers have been struggling to survive in a slow economy that's becoming dominated by e-books. The online retailer Amazon (AMZN, Fortune 500) recently announced that sales of e-books outpaced sales of books.

E-book sales top paperbacks, says Amazon

Barnes & Noble's competitor, Borders, the second-largest book store operator, has been closing stores after filing for Chapter 11 bankruptcy earlier this year. To top of page

CNNMoney Sponsors

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.