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Beangrape
Posts: 19
Registered: ‎12-02-2011
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Re: William Lynch out as B&N CEO

Thanks Mercury Glitch and Keriflur for your responses. To respond:

 

1. I guess my point with this is that I would think the sales would be better for the next quarter (not necessarily profitable) given the changes that they made with opening up the device to Google Play and not having something that was so closed off. That seemed to be the biggest negative with buying a Nook product because they lacked a decent app store. This may be anecdotal but from what I have seen on their Facebook page and these forums there seems to be many new Nook owners. I'm aware that the plan to partner with other device manufacturers was first "floated" early this year and doesn't relate to the most recent earnings report. I'm just hoping that the next quarter will see better financial numbers to encourage the Executives to consider leaving whatever the next device is (if there is one) as an open product.

 

2. I'm hoping that the current plan announced in June remains the same.

 

3.  To me there seems to be a need to have a dedicated color device along with a black and white ereader. I wouldn't think it would be enough to have just a dedicated ereader as those sales seem to be slowing and more people move to a full service tablet. I have read several times that B&N likes having a dedicated Nook product because it draws in foot traffic to their stores (which every store needs). If they just give up on having a dedicated device then they lose the foot traffic.

 

4. Another thing I though of. There has been talk for awhile about spinning Nook off as it's own company. Isn't Nook already spun-off as Nook Media LLC, and they separate out the financials for that segment? What would the difference be between a separate subsidiary (as it is now, I think) and being spun-off? Since Nook loses so much money it seems that if it were spun-off completely and a stand alone company that would be a quick way to go bankrupt.

 

5. Also if MS were to buy Nook and produce a Nook co-branded Surface how would that work with existing products? For example: I bought a Nook Color a few years ago and upgraded to the Nook HD. Most of what I had was able to load onto the new Nook HD. But if there is a Nook Surface that runs on Windows than I would think that you wouldn't be able to load your current HD items onto the new device because the OS's are different.

 

Sorry for the long post.

Distinguished Bibliophile
keriflur
Posts: 6,551
Registered: ‎01-05-2010

Re: William Lynch out as B&N CEO

[ Edited ]

Beangrape wrote:

 

3.  To me there seems to be a need to have a dedicated color device along with a black and white ereader. I wouldn't think it would be enough to have just a dedicated ereader as those sales seem to be slowing and more people move to a full service tablet. I have read several times that B&N likes having a dedicated Nook product because it draws in foot traffic to their stores (which every store needs). If they just give up on having a dedicated device then they lose the foot traffic.


B&N doesn't really make much on hardware sales - it's content sales that bring in the money.  B&N stated that eink devices drive content sales, and that matches with logic, as eink owners generally are big readers.  So each sale of an eink device means a lot more revenue for B&N than each sale of a tablet.  Eink devices also have a walled garden across the industry, as they only offer one store on-device, and B&N was (until this year) leading the tech charge in eink devices.  If they lose eink, they will lose their ebook business, because eink customers will choose a device that is associated to another store and take their ebook purchases with them.  The same cannot be said of tablets.

 

As for foot traffic - they will still get foot traffic from eink devices.  If they really want foot traffic, they need to look at making their stores a place people want to go, not hanging their hat on folks needing help with their devices.

 

Now, to clarify, I'm not saying B&N should stop selling tablets, just that the loss of tablets won't impact the company the same was as the loss of eink.

Distinguished Bibliophile
Mercury_Glitch
Posts: 1,379
Registered: ‎06-07-2011

Re: William Lynch out as B&N CEO

1) Yes, I imagine sales went up, but prices went down.  Depending on the margins for the device it could be more profitable.  But if the sale price was significantly below cost it's going to be harder to break even and then become profitable.  I believe others here are more well versed in this sort of price:cost relationship, but I'll attempt an example. 

 

Lets say I sell oranges (the item is irrelevant).  It costs me 1 dollar to get an orange and I sell them for 2.  I make a nice profit as long as I keep selling.  But lets pretend I'm not selling what I'd like.  I reduce the price to 1.50, still a profit but less so, and I see a small but relatively insignificant increase in sales.  Now I reduce the cost to 50 cents.  I'm losing on each orange, but if I sell enough I make more than I would have otherwise.  I'm still losing money and it's just a way of delaying what will likely be a bad end.  Unless sales pick up and I can increase the price, or if I'm just trying to sell out of oranges so I can start selling limes instead.

 

2) I think a lot of us are.  I know Keri and I both have hopes that B&N keeps their word about the eink devices. 

 

3) The thing is the eink devices seem to have been the better source of income for B&N.  Device costs aside they reported that eink devices accounted for more purchases than the color devices.  So pretend B&N makes 20$ on both the NSTG and the Nook HD/+ when they sell them (made up numbers are made up).  Now they keep making money when people buy things, lets say the eink owner buys 200$ worth of books/magazines/newspapers in a given year, while the Nook HD owner only buys 80$ worth of books/magazines/newspapers/apps.  If you were B&N which would you rather sell more of?  And that's assuming R&D costs and profit margins are the same for both devices, something I can't imagine is true.

 

4) Nook Media would be a tech start up, that's more attractive to investors than a brick and mortar store.  I suspect that if it were no longer a part of B&N, B&N would still want to partner with them to continue selling them and selling through them.  I don't know the possibilities here and this is really just conjecture. 

 

5) I suspect you'd be out of luck if the MS Nook ran Windows.  When the HD released not all the apps were simply updated for the screen change, some developers released 'HD' versions and charged existing owners of the regular version for them.  I have to suspect that would be even more widespread with the switch from Android to Windows.  That goes for things purchased through B&N and the Google Play Store. 

The Wheel weaves as the Wheel wills, and we are only the thread of the Pattern.
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deesy58
Posts: 2,486
Registered: ‎01-22-2012
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Re: William Lynch out as B&N CEO

[ Edited ]

keriflur wrote:

deesy58 wrote:

So ... it seems that Mr. Riggio is actually the CEO after all.  Deja Vu from a different thread? 

My understanding is that Riggio is overseeing the division CEOs in his capacity as chairman, but that he has NOT been named B&N CEO, and B&N is not planning to name an overall CEO at this time.  This lends credence to the idea that the company will be broken up, unfortunately.


So then, in order to better understand this ... Mr. Riggio is the Chairman of the Company.  Mr. Riggio is making executive-level decisions.  All of the other "CEOs" in the company report to Mr. Riggio.  Clearly, he is the "chief," so to speak:

 

"the head or leader of an organized body of people; the person highest in authority: the chief of police."
 
 
Mr Riggio is the head or leader of Barnes and Noble, Inc., but he is not the chief?  How, exactly, does that work?  Is the chief of the chiefs not a chief?  :smileylol:
 
Sounds to me like a distinction without a difference. 
 
 
Distinguished Bibliophile
Mercury_Glitch
Posts: 1,379
Registered: ‎06-07-2011

Re: William Lynch out as B&N CEO

Yes Deesy, when situations change they change.

 

For those wondering the thread Deesy brought up was about the Nook Study boards going away.  MBAs were brought up and Deesy asked if the CEO (at the time Lynch, though Deesy seemed to think it was Riggio) had an MBA.  FT provided evidence that yes Lynch did in fact have an MBA.  Deesy then replied that he stood corrected and started spouting that Riggio was the (then) man behind the curtain pulling all the strings.  Despite that Lynch was CEO and as far as anyone knows was not, as Deesy seems to think, a sockpuppet of Riggio. 

 

Now Lynch is gone, and B&N and Nook Media are in a state of transition.  I trust even most of you know what transition means, if not I'm sure Deesy can look it up and copy/paste it for you, he seems to like doing so. 

 

Now can we go back to discussing Lynch's resignation, and the future of Nook Media, rather than who may or may not be calling the shots for the near future until the transition period is over.

The Wheel weaves as the Wheel wills, and we are only the thread of the Pattern.
Inspired Bibliophile
deesy58
Posts: 2,486
Registered: ‎01-22-2012
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Re: William Lynch out as B&N CEO


Mercury_Glitch wrote:

Yes Deesy, when situations change they change.

 

For those wondering the thread Deesy brought up was about the Nook Study boards going away.  MBAs were brought up and Deesy asked if the CEO (at the time Lynch, though Deesy seemed to think it was Riggio) had an MBA.  FT provided evidence that yes Lynch did in fact have an MBA.  Deesy then replied that he stood corrected and started spouting that Riggio was the (then) man behind the curtain pulling all the strings.  Despite that Lynch was CEO and as far as anyone knows was not, as Deesy seems to think, a sockpuppet of Riggio. 

 

Now Lynch is gone, and B&N and Nook Media are in a state of transition.  I trust even most of you know what transition means, if not I'm sure Deesy can look it up and copy/paste it for you, he seems to like doing so. 

 

Now can we go back to discussing Lynch's resignation, and the future of Nook Media, rather than who may or may not be calling the shots for the near future until the transition period is over.


Well, you have certainly mischaracterized the matter, Glitch.  If you perform a search on some search engines for the CEO of Barnes and Noble, Inc., they will (and have) returned Leonard Riggio as the CEO.  Often, the Chairman will delegate the title of CEO to a subordinate for period of time, or even permanently.  The individual at the top of the B&N organizational pyramid is Leonard Riggio.  It is been so for quite a while.  He founded the company.  If you believe that Mr. Riggio actually worked for Mr. Lynch, I have a bridge in New York that is currently for sale at a very attractive price. 

 

I posted that I stood corrected in regards to a job title because I did not want to become entangled in a hair-splitting contest.  I do not believe that flyingtoastr even knew who he worked for because he was not aware of the name of the CEO of the retail stores division, and he asserted that it was Mr. Lynch. 

 

So tell us, Glitch: if Mr. Riggio is the very most senior manager at Barnes and Noble, Inc., and if all of the other CEOs report to him, then who really runs B&N?  If this situation has been in effect for a period of time, then who was the chief manager of the company during that period?  If one CEO reports to another CEO, then who is the real CEO? 

 

Why are you implying that anybody is a "sockpuppet" of anybody else?  That is an absurd accusation.  It implies that Lynch and Riggio are the same person.  You don't really believe that, do you? 

 

It appears that your insulting post is nothing more than a troll, and might even be a violation of Community Guidelines.  You are aware of them, I presume. 

Distinguished Bibliophile
Mercury_Glitch
Posts: 1,379
Registered: ‎06-07-2011

Re: William Lynch out as B&N CEO

I'm not implying anything Deesy.  I stated clearly that that was what your view seemed to be. 

 

The thread in question has the appropriate quotes with references.  The topic is not relevant to this one.  So please, do accept that you are, once again, wrong.  And move on. 

 

There's nothing insulting about my post, it is a retelling of the events in a thread which you referenced.  And an observation on your very clear love of copy/pasting from other sites.  You did it in this thread, and posted several other threads that consisted primarily of just the content you had pasted in.  I trust you can recall those threads. 

 

 

The Wheel weaves as the Wheel wills, and we are only the thread of the Pattern.
Inspired Bibliophile
deesy58
Posts: 2,486
Registered: ‎01-22-2012
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Re: William Lynch out as B&N CEO


Mercury_Glitch wrote:

I'm not implying anything Deesy.  I stated clearly that that was what your view seemed to be. 

 

The thread in question has the appropriate quotes with references.  The topic is not relevant to this one.  So please, do accept that you are, once again, wrong.  And move on. 

 

There's nothing insulting about my post, it is a retelling of the events in a thread which you referenced.  And an observation on your very clear love of copy/pasting from other sites.  You did it in this thread, and posted several other threads that consisted primarily of just the content you had pasted in.  I trust you can recall those threads. 

 

 


So now you compound the insult with a blatant lie?  "... copy/pasting from other sites.  You did it in this thread ..." 

 

I assume you can provide specifics of where I copied and pasted anywhere in this thread.  You can do that, can't you? 

 

You should at least make an attempt at accuracy and truthfulness.  :smileysad:

BN_AlexG
Posts: 473
Topics: 68
Kudos: 517
Solutions: 40
Registered: ‎09-19-2011
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Re: William Lynch out as B&N CEO

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roustabout
Posts: 3,609
Registered: ‎03-31-2011

Re: William Lynch out as B&N CEO

"I did not want to become entangled in a hair-splitting contest."

 

At the moment FT's evidence as to who was CEO and whether they did have an MBA was first posted. 

 

Later, I think later that day, there was a squidlike burst of posts detailing the background for everyone in senior management at BN to indicate, perhaps, that not everyone had an MBA. 

"no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Fourth Amendment to the US Constitution.