Late this afternoon, the Barnes & Noble board of directors announced they are considering selling the company–along with other “strategic alternatives” that might “increase stockholder value.” Founder Leonard Riggio has expressed interest in assembling a group of investors to buy the bookseller.
The board was disappointed in what they saw as the company’s “significantly undervalued” stock, and nominated a special committee for “evaluating strategic alternatives.”
Riggio had this statement: “I fully support the Board’s decision to evaluate strategic alternatives at this time. Regardless of whether I participate in an investment group that buys the company, I, as well as the entire senior management team, am willing and eager to remain with the company and see it through the challenging years ahead … Having spent a lifetime in bookselling and building this great company, I am as committed as ever to the future of Barnes & Noble.”
The NY Times noted a spike in the company’s stock after the announcement: “Shares of Barnes & Noble jumped as much as 27 percent in after-hours trading on Tuesday, rising $3.51, to $16.35.”