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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
My blog:
T&T Capital Management Blog
My book:
Learn to Treat Your Portfolio as a Business
  • Barnes & Noble Surges After Microsoft Investment-Bloomberg 0 comments
    Apr 30, 2012 10:31 AM | about stocks: BKS, MSFT, BBRY

    Barnes & Noble Inc. (BKS) and its Nook product became a lot more viable this morning, after Microsoft (MSFT) invested $300 MM into a subsidiary holding the Nook college books business. The implied valuation of the entity is $2 billion. I don't think that the Nook would have lasted without a company with more clout and cash stepping in to assist in the endeavor. It seems like a reasonable bet for Microsoft except I do think the implied valuation seems pricey. I would prefer to see Microsoft buy Research in Motion (RIMM) which would boost earnings even if they offered a reasonable premium, and would certainly make the company a more viable competitor in the mobile phone market. This is a huge win for Barnes & Noble as they retain 82% of the subsidiary and they have a partner in addition to John Malone ready to bring in additional cash.

    http://www.bloomberg.com/news/2012-04-30/microsoft-to-invest-300-million-in-venture-with-barnes-noble.html

    Disclosure: I am long MSFT, RIMM.

    Stocks: BKS, MSFT, BBRY
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