US-based media company Liberty Media has revised its plans to buy US book shop Barnes & Noble, and has instead opted to buy 16.6% of the company for $204m.
Liberty Media bought 12 million shares of Barnes & Noble at $17 per share, with a dividend of 7.75%.
Liberty had previously offered to buy the company for $1bn. Barnes & Noble said in a statement: "In light of Liberty’s investment, the parties have ceased discussions regarding Liberty’s previously announced acquisition proposal."
Greg Maffei, Liberty Media’s president and chief executive, said: "We are excited about Barnes & Noble’s prospects as the leading bookseller in the US and its growth opportunities in the digital world. This investment provides Barnes & Noble with capital to grow its business on terms that are attractive for both parties and allows us to play a meaningful role in shaping their success to generate returns for our shareholders and theirs."
Gregory Maffei, chief executive of Liberty and Mark Carleton, senior vice president of Liberty, have joined Barnes & Noble’s board.