B&N Nook Dying?

By on December 13, 2014

Another ebook format bites the dust.  Well, not entirely, but one foot in the grave. Apparently B&N has lost hundreds of millions of dollars on the Nook.  I don’t know about you, but I have only one friend who has a Nook reader.  Of course, she also has a Kindle Paperwhite.  My friends, if they read books at all, have Kindles or use the free Kindle apps for Window, Mac, smartphones, and tablets. Did you know that Nook has free apps for Windows, Mac, iPhones, and Android?  Pretty obvious, but I didn’t even think of it until I was researching this article.  Maybe B&N needs better marketing.

(Reuters) – Barnes & Noble Inc (BKS.N) struck a deal to buy Microsoft Corp’s (MSFT.O) stake in Nook Media LLC, ending a two-year partnership and clearing the way for the bookseller to spin off its loss-making e-reader and digital content division.

Barnes & Noble shares closed down 5.4 percent on the New York Stock Exchange after the company also reported a much-weaker-than-expected quarterly profit, due to lower sales of Nook devices.

The company estimated the value of the cash and share deal at about $125 million.

Nook, launched in 2009, enjoyed initial success but has ended up costing Barnes & Noble hundreds of millions of dollars as it was unable to keep pace with Amazon.com Inc’s (AMZN.O) Kindle and Apple Inc’s (AAPL.O) iPad.

Microsoft invested $300 million in Barnes & Noble’s Nook e-reader in 2012 to gain a foothold in the fast-growing e-books market. As of Sept. 9, Microsoft owned about 17 percent of Nook Media through preferred shares.

Barnes & Noble said in June it would spin off its Nook Media business, which includes college bookstores, to focus on its retail book business.

Read the full Reuters story here.

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