In 2011, Liberty purchased a 17 percent stake in the beleaguered book retailer worth $204 million, which has struggled to compete in a world increasingly dominated by mobile devices and downloadable data.
The new ownership stake means Liberty will not have two preferred stock directors on B&N's board. As a result, current director Liberty president and CEO Greg Maffei will step down on April 8.
"By reducing our preferred position and eliminating some of our related rights, Barnes & Noble will gain greater flexibility to accomplish their strategic objectives," said Maffei said in a statement. "We look forward to maintaining our relationship with the company," he added.
The book seller's stock, traded on the New York Stock Exchange, slid by 10 percent to near $20 in early trading Thursday.