Robot 6

Barnes & Noble to split retail and Nook businesses

b-n-nook display

Struggling bookseller Barnes & Noble announced a plan this morning to split its retail and Nook businesses into separate publicly traded companies.

“We believe we are now in a better position to begin in earnest those steps necessary to accomplish a separation of Nook Media and Barnes & Noble Retail,” CEO Michael P. Huseby said in a statement. “We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately We fully expect that our Retail and Nook Media businesses will continue to have long-term, successful business relationships with each other after separation.”

The largest book chain in the United States, Barnes & Noble had previously explored splitting the company, but it abandoned those efforts last year.

As Forbes notes, the chances of the Nook succeeding on its own is anyone’s guess: The tablet, which hasn’t been able to emerge from the shadows of Apple’s iPad and Amazon’s Kindle, posted $87.1 million in revenue for the fourth quarter of fiscal 2014, a decrease of 22 percent from the same period last year.

However, James McQuivey, an analyst for Forrester Research, tells Mashable the split isn’t likely to alter Barnes & Noble’s position in a highly competitive market. “The reason to separate the company is to hope that someone like Microsoft would buy it,” he said. “But I don’t know if there is a buyer for Nook. That’s really the only outcome for Nook that will give it some opportunity to have a life when it’s out there on its own.”

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Comments

5 Comments

Using an image with the original device from 5 years ago makes this split seem even worse than it is.

And so the end begins…

Beware Of Geek

June 26, 2014 at 11:46 am

I can only hope that means my local B&N will stop using 25% of the store to push Nooks, and crowding out actual books.

If you have a Nook (like me) the end is nigh!

I agree I myself own two kindles an read print books an have always been annoyed that they lack a lot of print books in the store becase of them trying to sell the nook with I find a second rate davice compared to apples I pads an amazons kindles barns an nobles needs go back to just being a book store an quite trying to sell tech that know one likes an is bleeding money

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