Boston, MA 04/04/2014 (wallstreetpr) – Liberty Media Corp. (NASDAQ:LMCA) is all set to shed almost 90% of its stake in booksellers Barnes & Noble, Inc. John Malone had tried to take control of the company around three years ago but that investment strategy will stand reversed in about a week from now.

The bookseller’s stock prices dipped as much as 14% after the news broke out.

The new deal

Liberty Media Corp. (NASDAQ:LMCA), which is a Douglas County-based entertainment firm, will only own 10% of what it did, the company announced.

CEO, John Maffei will leave the board of directors at Barnes & Noble immediately, after the closure of the stock sale that might take place on April 8. However, Mark Carleton, who is Liberty Media senior vice president, will continue to serve in the Barnes & Noble board.

Reasons behind the move

Both the companies involved believe that the cut down of shares by Liberty Media will help Barnes & Noble to exercise more flexibility in dealings and also pursue other strategic steps that it requires to make.

The investment made by Liberty Media Corp. (NASDAQ:LMCA) in the booksellers might have been miscalculated at most. They had intended to buy a 70% stake in Barnes & Noble for $1 billion, back in April 2011. Malone and Maffei wanted to own the future of the Nook tablet, based on the Android operating system. However, a deal that was sought after could not be worked out at that time and Liberty settled at buying a 17% stake for around $204 million and further, took up two seats on the Barnes & Noble’s board.

The Nook tablet had a 25% market share at that time but it was not to hold this for long. The Kindle Fire by Amazon took over and the Nook hasn’t exactly made up since then. In fact, sales of the Nook reduced by 50.4% in the last quarter compared to that of the same quarter a year ago.

However, the recent announcement has made a big impact on the present rate of shares as they have taken a fall by 14%.