Wednesday, June 25, 2014

Barnes and Noble to Take Nook Media Public

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Barnes and Noble announced during a recent investors call that it was 100% committed to separating the Nook digital division from their bookstores. This will create a dedicated Nook company that will be publically traded and give investors an incentive to invest into the companies portfolio of eBooks, e-Readers, tablets and accessories.

In fiscal 2014 we have taken certain actions to strengthen the Company, including the ongoing rationalization of the NOOK business, growing the College business through new contract acquisitions and increased offerings to students and faculty, and initiatives to improve Retail's sales trends," said Michael P. Huseby, Chief Executive Officer of Barnes & Noble. "Our fiscal 2014 results and solid financial position at year-end reflect the positive impact of those actions. 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. 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 stage has been set for Nook Media to be on its own, since 2012 when Microsoft and Pearson both invested serious capital. This spun the Nook enterprise into its own segment, but was still a big part of Barnes and Noble. In late 2012, B&N founder Len Riggio petitioned the board to let him separate the bookstores from everything else, and the concept was heavily resisted.

Barnes and Noble has been shaking things up on the executive level and many top players have departed the compay. Jim Hilt, head of global ebook sales, and before him digital products director Jamie Iannone and VP of digital products Bill Saperstein all departed in early 2014.

Barnes and Noble to Take Nook Media Public is a post from: Good e-Reader

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