Barnes & Noble to Buy Stake in Online Division From Bertelsmann - TheStreet

Barnes & Noble to Buy Stake in Online Division From Bertelsmann

The deal values the interest in Barnes & Noble.com at $164 million.
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Barnes & Noble

(BKS) - Get Report

agreed to acquire

Bertelsmann's

interest in

Barnes & Noble.com

(BNBN)

for $164 million in a combination of cash and notes, or $2.80 a share.

The companies expect to close the transaction within 45 days. Barnes & Noble said the acquisition will reduce its earnings by about 11 cents a share for the rest of the fiscal year ending Jan. 31, 2004.

Analysts polled by Thomson First Call expect Barnes & Noble to earn $1.91 a share in fiscal 2004.

Barnes & Noble said Barnes & Noble.com remains on track to report positive earnings before interest, taxes, depreciation and amortization for the fourth quarter of this year and 2004.

Barnes & Noble and Bertelsmann, a German media company, formed their venture to run Barnes & Noble.com in late 1998.

Shares of Barnes & Noble ended at $25.32 on the

New York Stock Exchange

. Barnes & Noble.com closed

Nasdaq

trading at $2.04.