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Microsoft (MSFT) is offering $1B for Nook Media's (BKS) e-reader, tablet, and e-book ops (but...

Microsoft (MSFT) is offering $1B for Nook Media's (BKS) e-reader, tablet, and e-book ops (but not its college bookstore arm), TechCrunch reports. If true, the valuation assigned to NM is well below the $1.7B given when Microsoft bought a 17.6% stake (diluted to 16.8% by Pearson's investment) in April '12. Documents indicate NM (exc. the college ops) is expected to post FY13 (ended in April) revenue of $1.09B (-10% Y/Y) and an EBITDA loss of $360M, plans to discontinue its tablet line (makes sense, given market share trends), and will focus on content sales. Is such a business worth $1B? Regardless, Barnes & Noble ($1.06B market cap) should see a pop on the report. (FY13 warning) (FQ3 results)
Comments (4)
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
    And we were just talking about a (MSFT) tablet at the dinner table, 3 hours before this post.
    8 May 2013, 11:32 PM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2511) | Send Message
    Meanwhile the retail bookstores plus college stores are worth perhaps $11/share, and the founder Riggio has gone on record with his interest in buying the bookstores. It looks like a broken up BKS might be sold for a grand total of $29 per share. The short interest in BKS is huge. Tomorrow should be interesting.
    8 May 2013, 11:59 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (20415) | Send Message
    The market seems to be all about killing shorts. If Bernanke doesn't take his foot off the accelerator he'll produce a market without shorts, where short-inclined investors will be deeply de-capitalized.
    9 May 2013, 08:54 AM Reply Like
  • Ben Hanson
    , contributor
    Comments (470) | Send Message
    I heartily endorse this acquisition!
    9 May 2013, 02:12 PM Reply Like
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