Barnes & Noble Purchased by Elliott Management

July 14, 2019 James Heinsman Hedge Fund News


Elliott Management Corp successfully purchased the giant bookseller Barnes & Noble last week. It was the activist hedge fund’s second deal to acquire a bookstore chain. Last year Elliott bought British bookshop Waterstones.


A successful deal means the end of the iconic company as a public traded entity.


According to the Wall Street Journal the deal was expected to be valued at $6.50 per share, or the equal of $476 million, but the end result was a final purchase price of $638 million. It is expected that James Daunt, the CEO of Waterstones, will take over the same role for B&N. The deal was unanimously approved by B&N’s board


Since Elliot’s purchase of Waterstones, the bookseller went from posting losses to seeing a two-digit profit margin.


Stephen Riggio, B&N’s founder’s brother, who is also a former CEO and sits on the board of B&N said:


“I believe they are uniquely suited to improve and grow our company for many years ahead.”

B&N Fifth Avenue. Photo courtesy of Beyond My Ken

Barnes & Noble, Elliott Management, Waterstones,

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