Closing the Book on Barnes & Noble

Liberty Media sells off most of Barnes & Noble stock.
3:00 | 04/03/14

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Transcript for Closing the Book on Barnes & Noble
Understand that a New York as a financial markets close on Thursday April 3 this is story stock. Barnes & Noble in a move today by Liberty Media which helped take a big bite out of the booksellers -- prize. To break it all down I'm joined by Rick Newman from Yahoo! finance Rick a big sell off by liberty meanie media today X what happened and the ripple effect. Liberty Media is a big media industry telecommunications company. -- it -- about little more than 15%. Of book of Barnes & Noble back in 2011. The today surprised at the markets by saying it's selling most of that stake it's only -- -- hold on to about 2% of its stake in the book -- so basically that looks like. A big investors kind of bailing out on the company and both sides and instances as well it's really good staying it's gonna. Give -- Barnes & Noble a chance to you a little more flexibility in terms of future options and stuff like that. But in reality it looks as if a big investors said you know what we think we're not gonna make any more money on our stick around here. All right tickets acted 2011 -- John Malone of media communications tightened brought. The bought into this bookstore. While it never looked like a sure thing it was always a gamble and it was kind of an odd play for Liberty Media. There -- basically just betting that Barnes & Noble would be able able to regain some ground against first of all against Amazon. Which obviously is a huge competitor in the book business and also against all the tell all the tablet devices in the -- Amazon Kindle the apple tablets and stuff like that with its own not. Everybody's got a tablet out these days -- revenues have been plunging. And books at Barnes & Noble is not competing real -- with Amazon. What was really there were about Barnes and over really has going for it if anything -- that read -- the retail stores that's. That's the part of the business and has actually been stable everybody thinks that -- retail is doomed. But they've shown a lot of stores in their -- holding -- that. Let's see now why go back to that but I first wanna take a look at how Barnes and Noble's stock has -- in just the past two days. Take a look taking a little bit of a tumble there how the world that the faltering -- business have in liberty media's decision to shed so much stock. But having said but clearly it's a factor it's kind of interesting with that because before that big -- you're looking at. Arsenal the stock had actually done pretty well -- last few months it's still up a lot. For 2014. And that's mainly because the company has cut losses it seems to be cutting costs at a faster pace. Than expected investors have so let's let's look at pretty good kind of surprising -- they'll stabilize this business after all. So we don't know if Liberty Media know something about Barnes & Noble as as an owner that perhaps the broader market does not know. Or if they just decided you know we want we think we're not gonna make any more money on this investment we wanted to play our cash elsewhere but for now. Investors are investors are following. Liberty Media out of this stock. Another one to watch Rick Newman of Yahoo! finance thank you for join Ines thank you. Even watching story stocks -- -- abcnews.com. For your latest business headlines I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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