AP NEWS
Related topics

Barnes&Noble To Buy Fatbrain

September 13, 2000

NEW YORK (AP) _ In a sign of further consolidation in e-retailing, Barnes & Noble.com announced Wednesday that it will pay $64 million to acquire Fatbrain.com Inc., the third largest bookseller in professional and technical titles.

Under the terms of the deal, Barnes & Noble.com will acquire Fatbrain.com in exchange for $4.25 per share for all the outstanding shares of Fatbrain.com. Fatbrain.com will become a wholly owned subsidiary of Barnes & Noble.com.

The transaction involves 75 percent stock in Barnes & Noble.com and 25 percent cash for each Fatbrain.com share, Barnes & Noble said.

Fatbrain.com’s senior management, including its president and CEO, Dennis Capovilla, and executive vice president of product development, Kim Orumchian, are expected to continue in their current positions. Fatbrain.com will continue to be based in Santa Clara, Calif.

Fatbrain.com reaches more than 3.5 million employee desktops at almost 350 Fortune 1000 companies worldwide. There are more than 500 individual Fatbrain.com co-branded online bookstores and information resource centers.

With the acquisition, Barnes & Noble.com would own approximately 50 percent of MightWords, formerly a subsidiary of Fatbrain.com and a leading provider of digital content. In June, Barnes & Noble.com invested approximately $20 million for a 30 percent equity stake in MightyWords. Fatbrain.com retained a 23 percent interest in MightyWords.

Shares of Barnes & Noble, which were down more than 5 percent to close at $4.38 on the Nasdaq Stock Market, rose nearly 8 percent, or 34.4 cents, to $4.78 in after-hours trading.

Fatbrain.com stock, which was up 15 percent to $4.39 at the close, fell nearly 8 percent in after-hours trading to $4.08.

AP RADIO
Update hourly