Barnes & Noble has revealed that Liberty Media recently offered to buy out the company for the hefty amount of approximately $1 billion.
Following this revelation, shares of the largest book retailer in the US jumped more than 24 percent on Friday’s pre-market trading.
According to the company, the American media giant offered to buy out its shares for $17 each, which places the company’s net market evaluation at around $1.02 billion.
The offer was almost 21 percent higher than the actual value of Barne’s & Noble’s share which stood at $14.11 per share on Thursday’s market closing.
The company also announced that a special committee has been set up to observe and evaluate Liberty Media’s proposal.
Barnes & Noble, headquartered in Lower Manhattan, New York City, is the largest book retailer in the country. It has over 750 stores in 50 states.
The proposal from Liberty Media came at a crucial time when the printed book market has already been put through tremendous pressure following the rise in the usage of ebooks, a fact that has recently have been attested by Amazon, Wired reports.
Amazon recently revealed that the ratio of demand for ebooks against that for printed books on their site (including both hardcover and paperback) now stands at 105:100.