NEW YORK — Barnes & Noble Inc. says Liberty Media, the conglomerate controlled by John Malone, has dropped its bid to buy the bookseller and instead will invest $204 million in the company.
In May, Liberty Media Corp. offered $1 billion for Barnes & Noble, apparently enticed by the potential of the company’s Nook electronic reader.
Under the terms of the investment announced today, Liberty Media bought preferred stock convertible into about 12 million Barnes & Noble shares, giving it about a 17 percent stake in the company. The investment is another boost for New York-based Barnes & Noble, which recently lost a major competitor with rival Borders Group going out of business.
Leonard Riggio, chairman of Barnes & Noble, says the additional capital will go toward expanding the company’s digital business.
