From Reuters:
(Reuters) - Cable TV pioneer John Malone likes a bargain, and his $17 a share bid for Barnes & Noble Inc is already being slammed for undervaluing the largest U.S. bookstore chain. Shares of Barnes & Noble jumped about 30 percent to close at $18.33 on Friday as Wall Street analysts argued the company was worth more, pointing to the growing success of the bookseller's Nook e-reader as an opportunity to be exploited by Malone's Liberty Media Corp. They said the jump also showed that investors believe other bidders are bound to come in. Until the Liberty Media offer, the 9-month long auction process was said to be moribund. A month ago, Barnes & Noble shares had fallen as low as $8.45. Long-time watchers of Malone said he would likely not raise his bid by much more and that the financial opportunity was probably more important than its business strategy. "Malone will no doubt see value in the brand and the franchise and believe they can derive incremental value in the business," said Collins Stewart analyst Thomas Eagan. Malone, 70, is known in the media business for his shrewd tax-efficient investments and owns stakes in a wide range of media and Internet assets including shopping channel QVC, satellite company DirecTV Group and Starz Entertainment. During his run as an operator in the cable TV business he was known as a ruthless operator and former U.S. Vice President Al Gore dubbed him "Darth Vader." Apart from media, this year Malone became No. 1 private landowner in the United States with 2.1 million acres of land. Barnes & Noble said late on Thursday that Liberty Media had offered $17 per share, or $1.02 billion, and that a special board committee would look at the bid. Liberty Media said the offer is for about 70 percent of the bookseller, which will be attributable to its Liberty Capital tracking stock. The company said its cash contribution toward the purchase, depending on the financing it can obtain, will be around $500 million. Liberty's offer is conditional on top shareholder and founding Chairman Leonard Riggio keeping a stake in Barnes & Noble, which he built from a local New York bookstore into a national chain, and staying involved in running the company. Malone's Liberty Media has pursued a strategy in recent years to snap up cheap distressed media-related assets in the hope of making an outsized return on investment. In February 2009, Malone snapped up a 40 percent stake in Sirius XM Radio by lending $530 million to the satellite radio company, which was on the verge of bankruptcy. Malone was rewarded in just a few months after Sirius turned its business around and the stake is now worth more than $3.5 billion.
For more: Malone eyes Nook in cheap Barnes & Noble bid | Reuters
(Reuters) - Cable TV pioneer John Malone likes a bargain, and his $17 a share bid for Barnes & Noble Inc is already being slammed for undervaluing the largest U.S. bookstore chain. Shares of Barnes & Noble jumped about 30 percent to close at $18.33 on Friday as Wall Street analysts argued the company was worth more, pointing to the growing success of the bookseller's Nook e-reader as an opportunity to be exploited by Malone's Liberty Media Corp. They said the jump also showed that investors believe other bidders are bound to come in. Until the Liberty Media offer, the 9-month long auction process was said to be moribund. A month ago, Barnes & Noble shares had fallen as low as $8.45. Long-time watchers of Malone said he would likely not raise his bid by much more and that the financial opportunity was probably more important than its business strategy. "Malone will no doubt see value in the brand and the franchise and believe they can derive incremental value in the business," said Collins Stewart analyst Thomas Eagan. Malone, 70, is known in the media business for his shrewd tax-efficient investments and owns stakes in a wide range of media and Internet assets including shopping channel QVC, satellite company DirecTV Group and Starz Entertainment. During his run as an operator in the cable TV business he was known as a ruthless operator and former U.S. Vice President Al Gore dubbed him "Darth Vader." Apart from media, this year Malone became No. 1 private landowner in the United States with 2.1 million acres of land. Barnes & Noble said late on Thursday that Liberty Media had offered $17 per share, or $1.02 billion, and that a special board committee would look at the bid. Liberty Media said the offer is for about 70 percent of the bookseller, which will be attributable to its Liberty Capital tracking stock. The company said its cash contribution toward the purchase, depending on the financing it can obtain, will be around $500 million. Liberty's offer is conditional on top shareholder and founding Chairman Leonard Riggio keeping a stake in Barnes & Noble, which he built from a local New York bookstore into a national chain, and staying involved in running the company. Malone's Liberty Media has pursued a strategy in recent years to snap up cheap distressed media-related assets in the hope of making an outsized return on investment. In February 2009, Malone snapped up a 40 percent stake in Sirius XM Radio by lending $530 million to the satellite radio company, which was on the verge of bankruptcy. Malone was rewarded in just a few months after Sirius turned its business around and the stake is now worth more than $3.5 billion.
For more: Malone eyes Nook in cheap Barnes & Noble bid | Reuters
