From The Wall Street Journal:
Barnes & Noble Inc. said it would pursue a split of its retail and Nook e-reader businesses into two separate public companies.
The bookseller said it plans to complete the separation by the end of the first quarter of the next calendar year.
Shares jumped about 7% in recent premarket trading.
. . . .
For the latest quarter, the Nook segment posted a 22% revenue decline to $87 million, the company said on Wednesday. Digital content sales fell 19% to $62 million.
Barnes & Noble’s retail segment, meanwhile, posted a 0.8% increase in revenue to $955.6 million as the latest quarter included an extra week. However, same-store sales, excluding Nook items, fell 1.9%. The company pointed to “unusually severe February weather,” as one reason for the decline. Including Nook items, same-store sales fell 4.1%.
“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,” said Chief Executive Michael P. Huseby. “We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately.”
. . . .
The company in August abandoned any plans to split up the company after considering the idea for 18 months.
Link to the rest at The Wall Street Journal (Link may expire)
PG says spending 18 months unsuccessfully trying to split Nook from the bookstores, then deciding to stay together then deciding again to split up doesn’t portend a sunny future for Barnes & Noble.
PG suspects that Nook has already suffered a significant brain drain. This news will send even more talented employees out the door.