Barnes & Noble Shares Plunged: What You Need to Know
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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