Elliott Prepares Waterstones and Barnes and Noble for Landmark IPO

Elliott Management, the American investment firm controlling Waterstones and Barnes and Noble, is reportedly preparing to float the two bookselling giants in London or New York in the coming year. Market sources suggest that discussions with potential advisers are under way, with the appointment of investment banks anticipated early next year. While a final decision regarding the listing venue has not been reached, the London Stock Exchange is currently viewed as a favourable option in comparison to its New York counterpart.

A potential public offering would arrive as a notable boost for the British stock market, which has seen several established businesses opt for take-private transactions or shift their listings to the United States. Industry speculation is intensifying around the possibility of a dual listing for Waterstones, the United Kingdom’s leading bookseller, and Barnes and Noble, the dominant player in the American market.

Both companies are part of a larger group managed by Elliott, which acquired Waterstones in 2018 and Barnes and Noble a year later for an estimated 683 million US dollars. James Daunt, who has served as chief executive of Waterstones since 2011 and of Barnes and Noble since 2019, has indicated that a public listing is likely and preferable to another period of private equity ownership.

Despite Waterstones being headquartered in London, Daunt observes that Barnes and Noble’s presence in the United States is more substantial by scale. The combined businesses operate over one thousand bookshops in their respective countries. The group reported approximately 400 million dollars in profit and three billion dollars in annual sales last year. Daunt, who also owns his namesake chain Daunt Books, has overseen a series of acquisitions for Waterstones, including Foyles, Hatchards and Blackwells.

Elliott Management has maintained its reputation for aggressive shareholder activism, recently pressing BP to strengthen its share price and holding stakes in other sectors such as the Wasabi restaurant chain. Efforts to acquire further retail assets, such as electronics retailer Currys, have not always succeeded. The possible float of Waterstones and Barnes and Noble would mark a significant development within Elliott’s wider investment strategy.

Both Elliott and Waterstones declined comment on the rumoured listing plans, while Barnes and Noble did not respond to requests for comment.