Lead
Elliott Investment Management, the private investment firm that owns Waterstones and Barnes & Noble, has held early talks about a possible initial public offering for the bookselling group, the Financial Times reported on 18 December 2025. Sources say the multibillion-pound business prefers a London listing to New York, though no final decision has been made and timing is expected to be after the group’s financial year end in April. Together the chains operate more than 300 shops in the UK and more than 600 in the US, and the move would be one of the largest retail IPOs to consider the London market in recent years. Elliott and the booksellers have declined to provide detailed comment while talks remain at a preliminary stage.
Key takeaways
- Elliott Investment Management has opened initial discussions about an IPO for Waterstones and Barnes & Noble, according to the Financial Times (reported 18 Dec 2025).
- The owner reportedly prefers London for a flotation, but no final decision has been announced and plans could change.
- The group operates over 300 UK shops (Waterstones, plus acquired independents) and more than 600 US stores (Barnes & Noble).
- An IPO is unlikely before the company’s financial year-end in April 2026; advisers may be appointed early next year, sources said.
- James Daunt, chief executive of both chains since 2011 at Waterstones, is widely credited with stabilising the brands and executing acquisitions such as Foyles and Blackwell’s.
- Elliott paid an undisclosed sum for Waterstones in 2018 and bought Barnes & Noble in 2019 for $683 million (£510 million).
- The listing would be a rare major retail IPO for London and could help attract more large listings to the UK market.
Background
Waterstones and Barnes & Noble are respectively the largest bookshop chains in the UK and the US, each with decades-long retail histories. Waterstones has been run by James Daunt since 2011; under his leadership the chain resisted online competitors and expanded through selective takeovers including Foyles and Blackwell’s. Barnes & Noble, after years of retail pressure in the US, was acquired by Elliott in 2019 for $683 million (about £510 million) and has operated alongside Waterstones under common management and strategy.
Elliott Investment Management, founded and based in New York, is known for activist investment tactics and has previously moved to reshape boards and pursue strategic sales or IPOs at its portfolio companies. The fund acquired Waterstones from Alexander Mamut in 2018 and has since increased its UK high-street presence through other stakes and interventions. In recent years Elliott has explored transactions across sectors, including a bid for Currys and activist pressure at large corporations such as BP.
Main event
The Financial Times reported that Elliott has contacted potential advisers to scope out an initial public offering for the bookselling group. Sources told the FT that London is the preferred venue, although New York remains a possibility and discussions are early-stage. Because the company’s financial year ends in April, people familiar with the matter suggested a flotation would not be likely before the summer of 2026 at the earliest.
Those briefed on the discussions say Elliott could appoint investment banks early in the coming year to formalise valuation work and run a roadshow if the fund proceeds. The group’s scale—more than 900 shops across the UK and US combined—would make any IPO one of the more high-profile retail listings and could draw investor interest in consumer-facing real estate-light retail concepts.
James Daunt has acknowledged publicly that a public listing would be a logical next step for a privately owned retailer, telling the BBC this month that an IPO felt like an “inevitability” and would be preferable to a simple change of private owners. Elliott has not provided a substantive comment to reporters, and both Barnes & Noble and Waterstones were approached but offered limited responses while plans remain unfinalised.
Analysis & implications
An IPO would be strategically significant for several reasons. First, it would signal renewed confidence in bricks-and-mortar retail, specifically specialty bookselling, at a time when many large companies have migrated listings to New York or chosen private ownership. A successful London flotation could encourage other UK-focused groups to list domestically rather than seek US markets.
Second, the offering would give Elliott a route to crystallise value from a consolidated bookstore platform that spans two of the world’s largest book markets. Public markets would also subject the business to quarterly reporting and investor scrutiny, which could drive further operational discipline or a shift in capital allocation towards e-commerce and loyalty investments.
Third, market reception would hinge on growth narrative and margins. Although both chains have improved profitability under Daunt’s regional management and selective acquisitions, investors will probe how the group plans to expand sales in a mature physical retail footprint and compete with online rivals on pricing and convenience.
Finally, a London listing would be a symbolic win for the UK market, providing a marquee consumer retail prospect after a period of muted new issuances. However, broader market conditions—interest rates, IPO windows, and investor appetite for retail risk—will be decisive in whether the flotation proceeds and at what valuation.
Comparison & data
| Entity | Approx. stores | Key year of ownership change |
|---|---|---|
| Waterstones (UK) | 300+ | 2018 (acquired by Elliott) |
| Barnes & Noble (US) | 600+ | 2019 (acquired by Elliott for $683m / £510m) |
The table above summarises scale and ownership dates that frame a potential IPO. Together the two chains operate roughly 900 stores; investors assessing a flotation will weigh physical footprint economics against the strength of each brand and management’s track record since Elliott’s acquisitions.
Reactions & quotes
Public reaction has been measured while discussions remain private. Industry commentators note the potential symbolic importance for the London market but caution that execution risk is material.
“It feels like an inevitability,”
James Daunt, CEO (comment to BBC)
Daunt framed a public sale as a natural phase for a mature, privately held retail business—preferable, he said, to a simple private-to-private handover.
“Elliott declined to comment,”
Elliott Investment Management (statement to press)
The firm has so far given no detailed public briefing on intentions, consistent with sources describing the process as exploratory.
“A London listing would be welcomed by market participants seeking larger domestic flotations,”
Market analyst (industry comment)
Analysts stress that market conditions and investor appetite for retail stories will determine timing and success.
Unconfirmed
- Preference for London: multiple reports suggest London is favoured, but Elliott has not formally confirmed a venue selection.
- Timing and advisers: sources indicate bankers might be appointed early next year, but no public appointment has been announced.
- Valuation and structure: there is no public information on target market capitalisation, share structure, or whether the IPO would include both chains in a single listing.
Bottom line
The suggestion that Elliott is preparing an IPO for Waterstones and Barnes & Noble is plausible given the fund’s history and the companies’ improved operating profiles under joint management. A successful London flotation would be notable for the UK market and could reshape investor interest in retail-focused listings.
However, the plan remains at an early stage and will depend on market conditions, formal adviser appointments and the group’s ability to present a clear growth story. Readers should treat venue preference and timing as provisional until Elliott or the companies issue confirmed statements.
Sources
- The Guardian (news report summarising developments and quotes, 18 Dec 2025)
- Financial Times (news media — reported initial adviser talks; article cited by multiple outlets)
- BBC (news media — interview/comments attributed to James Daunt)
- Elliott Investment Management (official investor/firm site)