Barnes & Noble to Separate Retail and Nook Business
Barnes & Noble's Nook has been available for quite some time, competing against devices like the Amazon Kindle. The company has seemed unsure of where its e-reader should go ever since its initial offering however, with Barnes & Noble announcing a Microsoft deal two years ago that was supposed to help the device's sales, revealing that it would partner with third-party designers for a new Nook, and recently noting that it had made plans to make a Galaxy Tab 4 Nook in a partnership with Samsung. Sales of the device have been quite horrid despite all of these efforts, with Nook business falling more than 35 percent during the fiscal year for Barnes & Noble.
Barnes & Noble has announced now that it thinks that it can solve the various shortcomings of the Nook by splitting its retail business and its Nook business. In doing so, the two business entities would exist as two separate public companies. Barnes & Noble hopes that by making this transition, which is expected to be completed in the first three months of 2015, the Nook will have a better chance to compete against other e-readers in terms of sales. The company does warn that while the deal has been signed off by its board of directors, it could be canceled or delayed due to market conditions.