NEW YORK--(BUSINESS WIRE)--Oct. 3, 2018--
Barnes & Noble, Inc. (NYSE: BKS) today announced that its
Board of Directors has decided to enter into a formal review process to
evaluate strategic alternatives for the Company. This decision follows
expressions of interest from multiple parties in making an offer to
acquire the Company, including from the Company’s Chairman, Leonard
The Board of Directors has appointed a Special Committee of independent
directors, comprised of Mark Carleton, Paul Guenther, Patricia Higgins
and Kimberley Van Der Zon, to lead the strategic review process. The
Special Committee will be advised by independent legal and financial
advisors. Mr. Riggio has committed to support and vote his shares in
favor of any transaction recommended by the Special Committee. There can
be no assurance that a transaction will be consummated.
The Company further notes that it has observed rapid material
accumulations of its stock by a party or parties that cannot be
identified. In light of the impending strategic alternatives process and
such share accumulations, the Board also announced the adoption of a
short-term Shareholder Rights Plan. The adoption of the Rights Plan is
intended to maximize the likelihood of a successful outcome for the
strategic alternatives process.
Under the terms of the Rights Plan, the rights will expire on October 2,
2019. In the absence of further action by the Board and subject to
certain exceptions, the rights will be exercisable if a person or group,
without Board approval, acquires 20% or more of Barnes & Noble’s Common
Stock or announces a tender offer which results in the ownership of 20%
or more of Barnes & Noble’s Common Stock. If the rights become
exercisable, all rights holders (other than the person triggering the
rights and related parties) will be entitled to acquire preferred shares
equivalent to Barnes & Noble’s Common Stock at a 50% discount.
The rights will trade with Barnes & Noble’s Common Stock, unless and
until they are separated upon the occurrence of certain future events.
Barnes & Noble’s Board may terminate the Rights Plan or redeem the
rights prior to the time the rights are triggered. Further details of
the Rights Plan will be contained in a Form 8-K to be filed with the
Securities and Exchange Commission.
The Board of Directors is being advised by Guggenheim Securities, LLC as
its financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP
as its legal advisor. Advisors to the Special Committee will be
disclosed at a later date.
About Barnes & Noble, Inc.
Barnes & Noble, Inc. (NYSE: BKS) is the nation’s largest retail
bookseller, and a leading retailer of content, digital media and
educational products. The Company operates 629 Barnes & Noble bookstores
in 50 states, and one of the Web’s premier e-commerce sites, BN.com (www.bn.com).
The Nook Digital business offers a lineup of popular NOOK®
tablets and eReaders and an expansive collection of digital reading and
entertainment content through the NOOK Store®. The NOOK Store
features digital books, periodicals and comics, and offers the ability
to enjoy content across a wide array of popular devices through Free
NOOK Reading Apps™ available for Android™, iOS® and Windows®.
General information on Barnes & Noble, Inc. can be obtained by visiting
the Company's corporate website at www.barnesandnobleinc.com.
BKS – Financial
This press release contains certain forward-looking statements (within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended) and
information relating to Barnes & Noble that are based on the beliefs of
the management of Barnes & Noble as well as assumptions made by and
information currently available to the management of Barnes & Noble.
When used in this communication, the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “plan,” “will,” “forecasts,”
“projections,” and similar expressions, as they relate to Barnes & Noble
or the management of Barnes & Noble, identify forward-looking statements.
Such statements reflect the current views of Barnes & Noble with respect
to future events, the outcome of which is subject to certain risks,
including, among others, the general economic environment and consumer
spending patterns, decreased consumer demand for Barnes & Noble’s
products, low growth or declining sales and net income due to various
factors, including store closings, higher-than-anticipated or increasing
costs, including with respect to store closings, relocation, occupancy
(including in connection with lease renewals) and labor costs, the
effects of competition, the risk of insufficient access to financing to
implement future business initiatives, risks associated with data
privacy and information security, risks associated with Barnes & Noble’s
supply chain, including possible delays and disruptions and increases in
shipping rates, various risks associated with the digital business,
including the possible loss of customers, declines in digital content
sales, risks and costs associated with ongoing efforts to rationalize
the digital business, risks associated with the eCommerce business,
including the possible loss of eCommerce customers and declines in
eCommerce sales, the risk that financial and operational forecasts and
projections are not achieved, the performance of Barnes & Noble’s
initiatives including but not limited to new store concepts and
eCommerce initiatives, unanticipated adverse litigation results or
effects, potential infringement of Barnes & Noble’s intellectual
property by third parties or by Barnes & Noble of the intellectual
property of third parties, and other factors, including those factors
discussed in detail in Item 1A, “Risk Factors,” in Barnes & Noble’s
Annual Report on Form 10-K for the fiscal year ended April 28, 2018, and
in Barnes & Noble’s other filings made hereafter from time to time with
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those described as anticipated,
believed, estimated, expected, intended or planned. Subsequent written
and oral forward-looking statements attributable to Barnes & Noble or
persons acting on its behalf are expressly qualified in their entirety
by the cautionary statements in this paragraph. Barnes & Noble
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise after the date of this communication.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181003005868/en/
Source: Barnes & Noble, Inc.
Senior Vice President
& Noble, Inc.
Relations and Corporate Finance
Barnes & Noble, Inc.