DOW JONES NEWSWIRES Barnes & Noble Inc. (BKS) said Liberty Media Corp. (LCAPA, LINTA, LSTZA) has invested $204 million in the bookseller through a purchase of new preferred stock, which could convert to a 17% stake. It also said that with the investment, the two have ended talks about Liberty's proposal to acquire Barnes & Noble. In May, Liberty offered to purchase 70% of Barnes & Noble at $17 per share, which valued the bookseller at $1.02 billion. Barnes & Noble said Liberty bought newly issued preferred shares that are convertible to 12 million common shares at a price of $17 a share, which would represent a stake of 16.6%. With the preferred stock, Liberty will be entitled to elect two nominees to the board, which Barnes & Noble has agreed to expand to 11. The board nominees will be Gregory B. Maffei, Liberty's chief executive, and Mark D. Carleton, a Liberty Senior vice president, both companies agreed. It will also get a chance to vote on matters submitted to the company's shareholders on an as-converted basis. Barnes & Noble shares closed Thursday down 6.9% at $12.09 in the midst of a wide market decline. They weren't active after hours. -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
