B&N offer: company will buy stores for $22 a share, or NOOK for $5 a share

B&N offer: company will buy stores for $22 a share, or NOOK for $5 a share

I’ve simplified it in the headline, but basically, news broke according to this

Bloomberg BusinessWeek article by Nick Turner and Miles Weiss

and other sources (I first heard it on ABC News) has put an offer on the table to buy Barnes & Noble.

It’s important to note that this same company, G Asset, made an offer a few months back.

This is a better offer by about ten percent, but the big problem seems to be that G Asset just may not have the…gee…assets 😉 to buy it.

It’s quite a bit of money, and they may not have that much on hand.

Alternatively, though, they would buy the NOOK business (actually, 51% shares…that’s the case for both of these deals) for $5 a share. Comparing that to $22 a share for the other part of B&N, it’s a lot less to raise. Even for the NOOK, other people would probably have to kick in north of $100 million to make it happen, I think.

Who would do that?

That’s hard to say.

There might be some value in the “parts”. I don’t think that’s true for the NOOK much, but B&N probably owns some attractive physical assets and supply chains.

Honestly, though, I don’t think this will happen at this price with this company.

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This post by Bufo Calvin originally appeared in the I Love My Kindle blog. To support this or other blogs/organizations, buy  Amazon Gift Cards from a link on the site, then use those to buy your items. There will be no cost to you, and a benefit to them.

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