Barnes & Noble (BKS) shares tumbled more than 11% in Thursday morning trading after a major stakeholder said it would slash its holdings of BKS stock.
In 2011, Liberty Media Corp. (LCMA) acquired a 17% stake in Barnes & Noble. Now, LCMA says it will sell most of its Barnes & Noble shares to institutional investors, retaining just a tenth of its original stake in the struggling bookseller, the Associated Press notes.
While investors clearly didn’t like the news, Barnes & Noble’s Chairman said LMCA’s move would allow the retailer to consider “various strategic options.”
Barnes & Noble has struggled to compete with online booksellers like Amazon (AMZN). Its Nook e-reader, which was once considered a possible savior for the company, has fallen by the wayside in the tablet wars, overshadowed by Apple‘s (AAPL) iPads, Amazon’s Kindle and myriad tablets running Google‘s (GOOG) Android.
Despite its troubles, BKS stock has gained more than 35% over the past 12 months. Barnes & Noble stock closed at $22.11 per share on Wednesday. LMCA stock was flat in morning trading.