Updated: Barnes & Noble Gets $204 Million Investment From Liberty Media

It is not the outright buy that Barnes & Noble was hoping for, but Liberty Media is making a strategic investment of $204 million in the company, making it B&N’s third largest shareholder after Leonard Riggio and Ronald Burkle. Shares are up about 3.5 percent.

Liberty Media purchased about 12 million shares of preferred stock, roughly 16.6 percent of the company’s stock, at a price of $17 per share. The investment was approved by Barnes & Noble’s board of directors and “the parties have ceased discussions regarding Liberty’s previously announced acquisition proposal.” Under the terms of the investment, Liberty will be allowed to nominate two members to Barnes & Noble’s board of directors, bringing the total number of board members to eleven. Liberty and B&N agreed in advance that the nominees would be Maffei and Liberty SVP Mark Carleton.