Barnes & Noble Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Barnes & Noble (NYS: BKS) fell more than 12% in early trading today and remain down more than 10% as of this writing. A report in The Financial Times says that Liberty Interactive (NAS: LINTA) may be unable to purchase the bookseller after all.

So what: In May, Barnes & Noble said it had come to terms with Liberty on a $1 billion acquisition. Now, the Times says John Malone's media empire faces financing constraints that would put the kibosh on the deal as intended.

Now what: But the story doesn't end there. According to the Times, Liberty is mulling an outside investment as an alternative. Either way, the story paints a dim view of B&N's prospects: no other suitors and a bankrupt competitor in Borders Group. Where do you stand on this stock? Would you use the sell-off as a buying opportunity? Weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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