New York - Barnes & Noble announced today it has received a proposal from Liberty Media to purchase the bookseller.
The proposal offers Barnes & Noble $17 dollars per share, or roughly $1 billion in cash and stock. The deal is far from closed and is still subject to the signing of a definitive purchase agreement and the receipt of shareholder and regulatory approval.
The online and brick and mortar book dealer formed a committee last summer to contemplate selling the company. The company has 705 bookstores located in all 50 states. The company recently announced that the download of the one millionth app for its NookColor.
Liberty Media said in a statement it contemplates the deal closing as a merger with Liberty owning 70 percent of Barnes & Noble. This would be accomplished by Liberty laying out about $500 million in cash with the remainder being financed.
Liberty also expects Barnes & Noble founder Leonard Riggio to be a participant in the merged company.
Liberty Media owns a wide range of retailing and media companies, including QVC, Sirius XM, Starz group and is a minor stakeholder in Time Warner, Viacom and Live Nation.