The Barnes & Noble board of directors stated Tuesday, August 5, 2010 that it will consider the sale of the nationwide bookstore chain in a “bid to increase shareholder value.” The board says that Barnes & Noble shares are “significantly undervalued.” The company is still “exploring all strategic alternatives,” and plans to invest $140 million to increase digital sales. Before the announcement, Barnes & Noble stock was selling at $12.84 a share, but stock opened at $15.90 the next day, indicating increased investor confidence.
Barnes & Noble chairman Len Riggio has stated that he will consider buying the company with an investor group, taking it private. Riggio has faced criticism from investor Ron Burkle in the past, after Riggio sold his family’s bookstore chain to Barnes & Noble for $514 million. However, Riggio is optimistic and says that he is “willing and eager to remain with the company and see it through the challenging years ahead.”