Barnes & Noble Spinning Off Nook Media26 Jun, 2014 By: Erik Gruenwedel
Barnes & Noble plans to separate its brick-and-mortar stores from its Nook Media unit, which includes Nook tablets. The New York-based retailer made the announcement June 25 in its fourth-quarter financials (ended May 3).
Barnes & Noble retail group will now operate separately from Nook Media, according to CEO Michael Huseby, who first disclosed plans of the spin-off in 2012. Indeed, B&N saw revenue gains in its stores and college book divisions, while Nook revenue fell 22% to $87 million.
Nook Media features UltraViolet compatibility, including link options to new and existing UV accounts via the Nook HD and Nook HD+ tablets. B&N sells UV-compatible discs and electronic sellthrough at its stores, website and tablets.
“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,” 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.”
B&N, together with Samsung, is still planning to bow a co-branded Galaxy Tab 4 Nook tablet in August.
“We will support the new Samsung Galaxy Tab 4 Nook with premier real estate within the store that will put the new devices front and center,” Mitchell Klipper, CEO of Barnes & Noble retail group, said on the fiscal call.