Barnes & Noble, Inc. (NYSE:BKS) shares leaped Friday, on word the book giant has officially entered into a definitive agreement to be acquired by hedge fund Elliott Management for $6.50 per share in an all-cash transaction valued at approximately $683 million.
This is not first acquisition Elliott has made of a large bookseller. In June 2018, the firm acquired Waterstones, the largest retail bookseller in the UK.
Following the close of the transaction, Elliott will own both Barnes & Noble and Waterstones, and each bookseller will operate independently but share a common CEO.
James Daunt, CEO of Waterstones, will assume the role of CEO of Barnes & Noble following the completion of the transaction and will be based in New York.
The $6.50-per-share purchase price represents a 43% premium to the 10-day volume weighted average closing share price of Barnes & Noble’s common stock ended Wednesday, the day before rumors of a potential transaction were reported in the media.
"Physical bookstores the world over face fearsome challenges from online and digital," said Daunt in a news release. "We meet these with investment and with all the more confidence for being able to draw on the unrivalled bookselling skills of these two great companies. As a place in which to choose a book, and for the sheer pleasure of visiting, we know that a good bookstore has no equal."
Shares acquired 64 cents, or 10.7%, to $6.60
