Liberty Media Plans A Hands-Off Role At Barnes & Noble

Liberty Media (LCAPA, LINTA, LSTZA) Chief Executive Greg Maffei said Tuesday his company plans to take a hands-off role in the management of Barnes & Noble Inc. (BKS) if it is successful in its bid to acquire 70% of the bookseller.

In keeping with its usual acquisition strategy, Maffei said Liberty intends to take a supportive role at Barnes & Noble, using its capital and tax resources to help the company manage its business and exploring possible alliances with its array of other media and e-commerce businesses.

Liberty's $1.02 billion offer for Barnes & Noble requires that Barnes & Noble's chairman, Leonard Riggio, remain with the company and retain his 30% equity stake. Also, Maffei was seen earlier on Tuesday in New York City at the launch of a new version of the bookseller's e-reader device, the Nook, chatting amiably with Barnes & Noble's chief executive, William Lynch, who could remain at the helm if Liberty is successful.

"We don't know anything about running book stores," Maffei said later in the afternoon at an investor conference hosted by Barclays Capital. "They know a hell of a lot about running book stores."

Maffei declined to comment on whether he has communicated with Barnes & Noble's other significant shareholders. Yucaipa Cos., the investment firm run by billionaire Ron Burkle, disclosed Monday that it acquired 603,000 shares of the bookseller at just under $18.49 apiece, signaling that it may oppose Liberty's $17-a-share offer. Yucaipa owns nearly 20% of Barnes & Noble, and could be an impediment to the deal if it's approved by the Barnes & Noble board.

Shares of Barnes & Noble closed up 3.9% to $19.32.

Maffei said Liberty's interest in Barnes & Noble is not tax-driven, and he said its offer price takes into account a number of factors, including Liberty's estimation of the company's fair value and what is required for a bid to be successful.

-By Nat Worden and Maxwell Murphy, Dow Jones Newswires; 212-416-2472; [e-mail]