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Barnes & Noble splitting off NOOK into separate company

Barnes & Noble announced today that it would separate its retail business from NOOK Media, which makes the eponymous e-reader tablet. The company said it hopes to complete the separation by the first quarter of 2015.

June 25, 2014

Barnes & Noble announced today that it would separate its retail business from NOOK Media, which makes the eponymous e-reader tablet. The company said it hopes to complete the separation by the first quarter of 2015.

CEO Michael Huseby gave this reason in a press release:

In fiscal 2014 we have taken certain actions to strengthen the Company, including the ongoing rationalization of the NOOK business, growing the College business through new contract acquisitions and increased offerings to students and faculty, and initiatives to improve Retail’s sales trends,. Our fiscal 2014 results and solid financial position at year-end reflect the positive impact of those actions. 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. We have determined that these businesses will have the best chance of optimizing shareholder value if they are capitalized and operated separately. We fully expect that our Retail and NOOK Media businesses will continue to have long-term, successful business relationships with each other after separation.

According to the company, NOOK Media had revenue of $87 million in Q2 2014 and $506 million for the full year. That compares to $956 million in Q2 2014 and $4.3 billion for the full year in revenue for the company's retail operations. NOOK Media experienced EBIDTA losses of $56 million for the quarter and $218 million for the full year.