B&N May Spin Off Nook

Seems to be a sign that company is struggling against Kindle
By John Johnson,  Newser Staff
Posted Jan 5, 2012 12:48 PM CST
Barnes & Noble May Spin Off Nook
In this Nov. 7, 2011, file photo provided by Barnes & Noble a demonstrator holds the new Barnes & Noble Nook Tablet.   (AP Photo/Barnes & Noble, Jim Sulley, File)

Trouble in Nook-ville? Barnes & Noble shares lost about a quarter of their value this morning on the surprising news that the company might spin off its Nook e-reader. B&N has poured a ton of money into the e-reader business, but the news suggests it's losing the arms race to Amazon, with its deeper pockets and mighty Kindle, reports Reuters. Overall Nook sales were up 70% in the last nine weeks of the year, but sales of the basic model—the $99 Nook Simple Touch—fell short over the holidays. B&N lowered the yearly sales forecast for Nooks from $1.8 billion to $1.5 billion.

CEO William Lynch put the potential move in a positive light, telling the AP that the company wants to "unlock value and shine a bright light on that business." One analyst at Michael Norris voices a common skeptical refrain: "Separating Nook from the Barnes & Noble brand would be a huge mistake. A lot of people who buy e-books buy physical books as well. Do they really want to tamper with that kind of marriage?" (Read more Barnes & Noble stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.