April 3 (Reuters) - Liberty Media Corp said it would reduce its stake in Barnes & Noble Inc but retain a 10 percent share of its initial investment in the largest U.S. bookstore chain.
Barnes & Noble shares fell 7 percent in premarket trading on Thursday.
Liberty Media, owned by billionaire John Malone, will also forego the right to elect two preferred directors to Barnes & Noble's board as a result of the reduced stake, the companies said in a statement.
Liberty Media first bought a stake in the bookseller in August 2011, when it invested $204 million to buy preferred stock that could be converted into a 16.6 percent stake in Barnes & Noble. (r.reuters.com/med36t) (Reporting by Siddharth Cavale in Bangalore)