Barnes & Noble stock jumps after hedge fund discloses 12% stake
- Share via
Barnes & Noble Inc. shares rose sharply after Jana Partners, a hedge fund that has pushed for companies to sell off assets, disclosed a 12% stake in the largest U.S. bookstore chain.
The New York-based retailer’s shares jumped 18% to $13.41.
Barnes & Noble is considering separating its growing Nook digital unit into a separate company so investors will give it the higher valuation of a technology business. In March the company hired a new chief financial officer, Michael Huseby, who helped spin off two units while at Cablevision Systems Corp. Jana has taken an activist role in publisher McGraw-Hill Cos., proposing a plan last August to break up the company.
“This increases the possibility of action,” said Michael Glickstein, chief investment officer of G Asset Management, a Barnes & Noble investor that has pushed for the company to spin off units. “Jana has experience in the publishing space, and a track record in finding value in breakup plays.”
The hedge fund is now the third-largest holder of Barnes & Noble stock, following founder and Chairman Leonard Riggio and Ron Burkle’s Yucaipa Cos., according to data compiled by Bloomberg.
Barnes & Noble put itself up for sale in 2010 following pressure from Burkle. The process ended with John Malone’s Liberty Media Corp. investing $204 million in Barnes & Noble in August 2011.
New York-based Jana Partners and Barnes & Noble did not comment.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
