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Strayer
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Speculation that B&N may spin off Nook

If B&N gets rid of Nook, what happens to Pubit? B&N had a bad year in 2011. Being totally selfish, what will happen to us if we lose our hone here? Is there some way we could help the sales of indie ebooks and Nook?
Doug_Pardee
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Re: Speculation that B&N may spin off Nook


Strayer wrote:
If B&N gets rid of Nook, what happens to Pubit? B&N had a bad year in 2011.

B&N is not looking to "get rid of NOOK", but rather to make it a separate operating segment for financial reporting purposes. This will make the cash flows of the other segments more clear, since right now the Retail (big-box bookstores) figures contain some NOOK and NOOK accessories sales, and BN.com also does. It'll also remove the development costs of NOOK devices from BN.com's cash flow reports.

 

As for "a bad year in 2011", that's hard to justify. B&N doesn't report on a calendar fiscal year, but over the past four quarters they've reported a total of $62 million net loss on $7 billion in sales (USD), which is a loss/sales rate of 0.8%. I can't call that "a bad year", especially when B&N spent a bunch of money designing and manufacturing the NOOK 2 and NOOK Tablet.

 

B&N does acknowlege overestimating the demand for the NOOK 2, but even given that, total NOOK sales during the holiday period were up 70% in units and 43% in dollars (comparable) over last year.

 

B&N's press release: http://www.barnesandnobleinc.com/press_releases/2012_01_05_2011_holiday_sales.html

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Strayer
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Re: Speculation that B&N may spin off Nook

The stock price is down. They haven't announced what they will do with Nook yet. Nook ST wasn't as strong a seller as they thought it would be, while Nook Tablet did well. I'd say it is uncertain until B&N makes an announcement. The statement by the CEO was vague.
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Ms_Kitty
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Re: Speculation that B&N may spin off Nook

I got the Tablet instead of the Touch - handed my old Nook down to my sister who is doing her best to learn to use it.

 

I think that putting the e-commerce into the hands of Geeks would be a good thing. It is very difficult for a brick-n-morter to convert to e-commerce.

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Tm-Moore
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Re: Speculation that B&N may spin off Nook

In other words PubIt will operate autonomously from BN just as CreateSpace does with Amazon. The accounting will be basically the same but BN won't have to write off the loss of revenues from operating PB. The Nook will still be BN's proprietary machine.

Theresa M. Moore
Author of the Children of The Dragon vampire series and other fiction/nonfiction books http://www.antellus.com/