Barnes & Noble Moves Ahead With Spin-Off of Online Unit

Computergram International, March 19, 1999

Book retailer Barnes & Noble Inc has filed with the SEC concerning its previously-announced public offering of shares in its internet unit. The amount of shares to be offered and the price range have yet to be determined, but the registration statement allows for a sale of up to $200m worth of stock.

The online unit will offer approximately 15%-20% of its shares to the public through an underwriting syndicate led by Goldman Sachs and Merrill Lynch. The company says the proceeds of the offering will be used to expand the growing e-commerce business, including the funding of new systems and distribution initiatives, and for acquisitions and general corporate purposes. Leonard Riggio, chairman and CEO of Barnes & Noble Inc, will serve as chairman of barnesandnoble.com and Jonathan Bulkeley will be its CEO. The soon-to-be-independent business has 650 employees and booked a loss last year of $83.1m on revenue of $61.8m. When publicly traded, the stock will be listed on the Nasdaq national market under the symbol BNBN.