Barnes & Noble may be ready for the sales block. The bookseller’s board of directors may elect to sell the company to shore up stockholder value, B&N announced late Tuesday.
Simultaneously, Leonard Riggio, the company’s founder, chairman and largest stockholder said he may seek to acquire the company with the help of an investor group.
B&N said it formed a special committee of 4 independent directors to consider all options for increasing shareholder value including a sale of the company.
Reuters said B&N stock soared on the news, climbing 21 percent and that B&N has been under increasing competitive pressure from stores such as Amazon and Walmart. It’s Nook eReader is also now in a digital device war with the Amazon’s Kindle and Apple’s iPad as B&N attempts to transition to sales of eBooks.
Source: Barnes & Noble and Reuters