Elliott Investment Management, the hedge fund behind Barnes & Noble and Waterstones, is considering listing these well-known bookstores on the stock market. They’ve been in talks with advisors about an initial public offering (IPO), according to the Financial Times. The firm seems more inclined to choose London for the IPO, which could give a boost to the UK market.
Right now, discussions are in the early stages. No decisions have been finalized, so things could change. The current financial year wraps up in April, which makes an IPO before summer unlikely. However, Elliott may bring in investment bankers early next year to help navigate the process.
Barnes & Noble and Waterstones are the largest booksellers in the US and UK, with over 600 locations in the US and more than 300 in the UK. Much of their recent success can be credited to their CEO, James Daunt. He’s been at the helm of Waterstones since 2011, steering the company through fierce competition from giants like Amazon. Under his leadership, they’ve also acquired notable rivals like Foyles and Blackwells.
Daunt recently shared with the BBC that an IPO seems like a natural next step for private businesses after ownership changes. He remarked, “It feels like an inevitability and probably better than being flipped to the next private equity person.”
Elliott purchased Waterstones in 2018 from Russian billionaire Alexander Mamut, and then acquired Barnes & Noble the following year for about $683 million. Elliott is known for assertive shareholder activism, often pushing big companies to change their strategies. They made headlines last year when they attempted to acquire electronics retailer Currys but did not succeed.
The prospect of an IPO for these bookstores is significant, especially considering the UK’s recent struggles to attract major companies. Many firms have either opted for New York listings or gone private. Analysts argue that a successful IPO could revitalize interest in the UK stock market, attracting investors back to its shores.
In a time when e-commerce dominates retail, the resilience and strategies employed by traditional booksellers could offer important lessons for other businesses. It showcases that with the right approach, even established companies can adapt and flourish.
For more information about why some books become overnight sensations, check out this article from The Guardian.
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