Elliott Management is preparing initial public offerings for bookstore chains Barnes & Noble and Waterstones, targeting a late 2026 listing that could value the combined entity at several billion dollars.
The move would mark a significant test for physical retail’s resilience against e-commerce, potentially creating one of the largest book retail public offerings in recent years.
Key Takeaways
- Elliott considers London listing over New York for combined booksellers
- IPO timeline targets late 2026 with multibillion-pound valuation expected
- Move could boost UK market amid ongoing IPO drought
Market Context & Strategic Positioning
The hedge fund is close to appointing advisers for the potential flotation, with London emerging as the preferred venue over New York 1. This preference could provide a welcome boost to the UK stock market, which has struggled with a prolonged IPO drought in recent years.
Elliott’s book retail empire spans approximately 1,200 Barnes & Noble stores across the United States and around 300 Waterstones locations in the UK. The combined entity would represent one of the world’s largest physical book retail networks at a time when the sector faces continued pressure from digital alternatives and online giants.
Financial Performance & Turnaround Strategy
Since Elliott’s acquisition of Barnes & Noble in 2019 for 638 million, the firm has implemented a turnaround strategy focused on localizing store operations and improving customer experience. The hedge fund also acquired UK-based Waterstones in 2018, creating a transatlantic book retail platform.
Industry sources suggest the combined valuation could reach several billion pounds, though specific financial metrics have not been disclosed. The timing reflects Elliott’s confidence in the physical book retail model’s long-term viability despite ongoing digital transformation pressures.
Industry Outlook & Market Dynamics
The potential IPO comes as physical book sales have shown surprising resilience, with many consumers continuing to prefer print books over digital alternatives for leisure reading. Barnes & Noble has reported improved performance under Elliott’s ownership, reversing years of declining sales and store closures.
“Elliott is exploring an initial public offering for Barnes & Noble and Waterstones,” according to the Financial Times report, which first broke the story 2. The listing would test investor appetite for traditional retail models that have successfully adapted to changing consumer preferences.
Strategic Implications
A London listing would align with Elliott’s broader strategy of capitalizing on valuation differences between UK and US markets. The move could also benefit from the UK government’s recent efforts to revitalize London’s capital markets and attract high-profile listings.
The IPO timeline suggests Elliott is taking a measured approach, allowing additional time for operational improvements and market conditions to align favorably. Success could pave the way for other private equity-backed retail companies to pursue public offerings in an increasingly challenging sector.
Not investment advice. For informational purposes only.
References
1“Waterstones and Barnes & Noble owner looks to list booksellers on stock market” (Dec 18, 2025). The Guardian. Retrieved December 18, 2025.
2“Elliott gears up to list Barnes & Noble and Waterstones in London or US” (Dec 17, 2025). Financial Times. Retrieved December 18, 2025.
3“Hedge Fund Elliott Considering IPO for Barnes & Noble, Waterstones” (Dec 18, 2025). Wall Street Journal. Retrieved December 18, 2025.
4“Elliott gears up for Barnes & Noble and Waterstones listing, FT reports” (Dec 18, 2025). Reuters. Retrieved December 18, 2025.
5“Elliott Management prepares for Barnes & Noble, Waterstones IPOs” (Dec 18, 2025). Investing.com. Retrieved December 18, 2025.
6“B&N, Waterstones Owner Considers IPO” (Dec 18, 2025). Publishers Lunch. Retrieved December 18, 2025.
7“Elliott gears up for Barnes & Noble and Waterstones listing, FT reports” (Dec 18, 2025). Global Banking and Finance. Retrieved December 18, 2025.
8“Elliott turns the page on London’s IPO drought with Waterstones listing plan” (Dec 18, 2025). MSN. Retrieved December 18, 2025.
9“Elliott preparing to list Barnes & Noble and Waterstones – FT” (Dec 18, 2025). MarketScreener. Retrieved December 18, 2025.