Barnes & Noble has been acquired by the hedge fund Elliott Advisors for $638 million.
The sale was announced Friday after months of speculation over the future of Barnes & Noble, the largest bookstore chain in the United States and a critical retail outlet for publishers and authors.
Elliott's acquisition of Barnes & Noble follows its purchase of the British bookstore chain Waterstones in June 2018. James Daunt, chief executive of Waterstones, will also act as Barnes & Noble's chief executive officer and will be based in New York.
The sale, which was an all-cash transaction, valued Barnes & Noble stock at $6.50 a share, a premium of nearly 42% over the retailer's stock price Wednesday, before reports of an impending deal caused the price to surge Thursday.
The sale was approved unanimously by Barnes & Noble's board. Leonard Riggio, the company's founder and chairman, who voted for the transaction, said in a news release: "In view of the success they have had in the bookselling marketplace, I believe they are uniquely suited to improve and grow our company for many years ahead."
Daunt is well regarded in the publishing industry for rescuing Waterstones from near bankruptcy. In the announcement, he said he was confident that Barnes & Noble could flourish despite the challenges facing the industry.
"Physical bookstores the world over face fearsome challenges from online and digital," he said. "We meet these with investment and with all the more confidence for being able to draw on the unrivaled bookselling skills of these two great companies. As a place in which to choose a book, and for the sheer pleasure of visiting, we know that a good bookstore has no equal."
Barnes & Noble has struggled to make a profit and increase its foot traffic and sales in recent years. The company has closed more than 150 stores in the past decade or so, leaving it with 627 stores.
Waterstones has pursued a strategy that many analysts say is the only way to compete in a marketplace dominated by online sales, by allowing individual Waterstones booksellers to tailor each store to the community's needs and interests.
Elliott will own both chains, and while Barnes & Noble and Waterstones will operate independently, they will share a CEO and "benefit from the sharing of best practices between the companies," the news release said.
Business on 06/08/2019