Barnes & Noble to spin off Nook tablets
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Barnes & Noble said this month it would develop a tablet with Samsung Electronics Co. Ltd. after curbing production of Nook tablets last year because of the losses.
Barnes & Noble said on Wednesday it more than halved its quarterly loss as it spent less on making and marketing Nooks.
The company said it plans to complete the separation by March 2015. “We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately,” chief executive Michael Huseby said in a statement on Wednesday.
Loss before interest, taxes, depreciation, and amortization at the Nook business narrowed 69% to $56 million in the fourth quarter. Investment firm G Asset Management said in February it offered to buy a 51% stake in either Barnes & Noble or in the Nook digital business, valuing the unit at about $300 million.
Barnes & Noble said on Wednesday it expects retail comparable bookstore sales and core comparable bookstore sales, which exclude sales of Nook products, to decline in the low-single digits in the next full year.
Barnes & Noble’s net loss narrowed to $36.7 million, or 72 cents per share, in the quarter ended 3 May, from $114.8 million, or $2.04 per share, a year earlier. Revenue rose 3% to $1.32 billion.
Shares were trading at $22.14 on the New York Stock Exchange on Wednesday. Reuters