The company announced today that it is acquiring an equity stake of up to 40 percent in Enews.com, a retailer of magazine subscriptions on the Internet.
Under the terms of the agreement, barnesandnoble.com will acquire approximately 32 percent of Enews.com for cash and stock. The exact amount of the purchase was not disclosed. Barnesandnoble.com closed at 17.13 yesterday, down 0.4.
As part of a four-year joint services agreement, barnesandnoble.com will also receive warrants which, when exercised over the life of the agreement, will increase its holding in Enews.com to approximately 40 percent, the company said.
The agreement strengthens barnesandnoble.com's position in the $9 billion U.S. magazine circulation market.
Enews.com is an online magazine retailer, offering subscriptions to about 1,000 magazines from more than 650 publishers.
This investment is the first of several barnesandnoble.com plans to make and announce in the coming months, the company said.