Barnes & Noble has decided to split off its Nook Media business from its retail operations as part of a plan that the company came up with a while ago. Barnes & Noble launched the Nook e-book reader in 2009 to take advantage of the digital book market.
After that, Barnes & Noble launched a line of low-priced tablets for users to access a digital media store for books, movies, games, and TV shows. The Nook struggled to compete against rivals like the Apple iPad and the Amazon Kindle though.
Barnes & Noble ended up setting up a joint venture with Microsoft and textbook publisher company Pearson. Now Barnes & Noble is shifting the strategy for Nook Media by splitting it from its retail business.
Nook Media’s revenues declined by 22% to $87 million last quarter and saw a 19% revenue drop for digital content sales to $62 million. Around a month ago, Barnes & Noble announced that it would partner with Samsung to build next-generation tablets instead of producing its own.
?We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately,? stated Barnes & Noble CEO Michael P. Huseby in a statement. ?We fully expect that our Retail and Nook Media businesses will continue to have long-term, successful business relationships with each other after separation.?