Barnes & Noble chairman wants to buy company - but not the Nook

February 25, 2013: 9:51 AM ET
barnes and noble store
NEW YORK (CNNMoney)

Barnes & Noble Chairman Leonard Riggio wants to buy the company's stores, and leave the company's Nook e-book business as a separate company.

Riggio, who disclosed his plans in a filing with the Securities and Exchange Commission on Monday, did not name a price. Shares jumped 8% in early trading.

Riggio is already the largest shareholder of Barnes & Noble (BKS), with nearly a 30% stake in the company.

The company had already been considering spinning off the Nook business as a separate company.

Last April, it announced a deal with Microsoft (MSFT) in which Microsoft bought a 17.6% stake in Nook. Publisher Pearson (PSO) bought a 5% stake in Nook in December.

Those deals both value the overall Nook business at more than $1.7 billion, even though Barnes & Noble stock is worth just less than $800 million.

Related: Top 3 e-book picks

In early January, the company reported a weak Christmas season, with sales at its retail stores falling 11%. Sales at its Nook unit fell 12.6% to just $300 million.

Earlier this month, the company warned of rising losses and disappointing sales for its Nook unit in the past year, results of which are due Thursday.

How Barnes & Noble ships millions of gifts

Barnes and Noble and other traditional book retailers have struggled with competition from Amazon.com (AMZN), which has its own Kindle e-book. Borders filed for bankruptcy two years ago and went out of business in July 2011.

Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,960.57 -123.23 -0.72%
Nasdaq 4,449.56 -22.54 -0.50%
S&P 500 1,978.34 -9.64 -0.48%
Treasuries 2.47 -0.04 -1.59%
Data as of 11:10am ET
Company Price Change % Change
Facebook Inc 75.19 0.21 0.28%
Apple Inc 97.67 0.64 0.66%
Bank of America Corp... 15.59 -0.03 -0.19%
Ford Motor Co 17.62 -0.22 -1.23%
Applied Materials In... 21.23 -0.52 -2.41%
Data as of Jul 25
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.27%
15 yr fixed3.29%3.27%
5/1 ARM3.34%3.47%
30 yr refi4.29%4.24%
15 yr refi3.26%3.25%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com