What The Heck Was Liberty Media Thinking?

Last night,

that Liberty Media

was making a bid for Barnes & Noble, Inc.

for $17 per share. The bid came out of nowhere, and surprised everyone. So why did John Malone do this? That's been the big question that everyone is asking this morning, as no one is really sure of the synergies here. Some, including

think that Malone may be doing the deal to get shoppers to experience all that Liberty has to offer under one roof. Others, including, the

do not understand the deal at all, especially since Barnes & Noble is not a tax advantaged company. Malone has had a habit of doing deals for tax advantaged companies and distressed properties, and has made money on the under-appreciated investments. The deal has not been finalized, and shares are actually trading higher than Malone's bid, which was at $17 per share. The companies have yet to sign an agreement. No one is really sure why or what the reasoning was behind the deal, but John Malone is a smart man, and this will likely become a much more appreciated deal as Malone works his magic. Perhaps Malone will take the Barnes & Noble stores and turn them into one-stop retail shops, selling everything that Liberty Medias has to offer, from Starz, to books, and other products. If investors believe that Malone knows what he is doing here, then going long Liberty Capital

, Liberty Starz

or Liberty Interactive

may potentially be a great investment.