Change the traditional media is struggling, splitting the Nook ebook Barnes

have to say the wave of electronic reading to promote a series of reform of the media industry in recent years, the media giants successively separated management weaknesses, focus on the development of a strong project. Last year, the Wall Street journal owner news corp’s television that the movie business, changed its name to the 21st Century Fox (21 st Century Fox). Earlier this month, Time Warner, Time Warner also gives their Time magazine. Recently, the largest entity bookstore Barnes & amp; Noble also announced the break up the traditional bookstore business with the Nook ebook.

Barnes & amp; Noble is not only faced with amazon and other retail giant impact to the bookshop, and at the same time inevitably fell into the device, the Kindle and other electronic devices in a wave of competition. The business is expected to be finished by march next year, when Barnes & amp; Noble’s Nook device, e-book, college bookstores and other business will be classified as the Nook Media, Barnes & amp; Noble will reply to the original physical book business. The Nook Media’s main shareholders will be Microsoft and Pearson, the two companies have had an investment for the Nook electronic business.

less optimistic Nook business

Barnes & amp; Noble move to entities will struggle to survive the book retail business with a dismal electronic business. After all, the day of the entity bookstore has a hard time at the same time facing the impact and the concept of electronic reading amazon online bookstore sold on. The year to march, Barnes & amp; Noble in the fourth quarter, to remove the Nook of the related equipment profit, Barnes & amp; Noble’s main business profit fell by 1.9%.

fortunately, Barnes & amp; Noble is still profitable, retail interest, tax, depreciation and amortisation (EBITDA) for a total of $354 million, a 0.4% drop in profit margins. But the Nook electronic business is not so optimistic. Nearly LiangCai years of interest tax, depreciation and amortisation total losses of $700 million, almost made with retail stores. Although the university bookstore business profit is good, but does not block the Nook business debacle — booked $2014 in fiscal 2014.

Barnes & amp; Noble CEO Michael Huseby reined in its Nook business losses control in the $2014 in 217.6 million, half fewer losses from the previous year. Recently announced by Barnes & amp; Noble cooperation with samsung is expected to further control the Nook business losses. But even so, the Barnes & amp; Noble also did not expect the Nook business within this fiscal year would be able to make a profit.

the Nook losses for Microsoft and one of the main investors apparently to be reckoned with, Microsoft signed a $305 million in financial support for the Nook 5 years agreement and continued until 2017. Maxim Group analyst John Tinker believes that Microsoft and Pearson should think about what to do in the future. A Microsoft spokesman would not comment.

entity bookstore return

the other side, the Nook business split to Barnes & amp; Noble’s main investors apparently WBH – with split statement, Barnes & amp; Noble shares are still up 5%. Tinker, says Barnes & amp; Noble in a move that will originally complex revenue structure simplified. After all, if Barnes & amp; Noble continue to do so “pluralism”, considerable who wouldn’t be able to accurately assess its business situation.

somebody also said, Barnes & amp; Noble’s move is the impact on electronic reading surrendered a white flag. James McQuivey, an analyst with Forrester Research, “Barnes & amp; Noble spent on electronic business competition impact energy and they meet is not equal. The Nook products elegant enough, but in the end product sell well is king. This point, the amazon do very successful. Barnes & amp; Noble falls.”

Barnes & amp; Noble as early as 2012 to save the business plan, but last summer shake-up under pressure again the plan. When Michael Huseby promised to provide users with better electronic reading experience. But then the market environment is not satisfied, Huseby ambition will go away.


Barnes & amp; Noble bookstore customized electronic business strategy for the university, but also reduce the backlog of inventory, in the future the Nook tablet business will rely on the cooperation with samsung. In addition, Barnes & amp; Noble entity shop in the holiday shopping season’s performance is also better than expected, in Huseby point of view, the entity bookstore operation than previously expected, in the industry and the breakup of the business, operating space of the entity bookstore is bigger.

Huseby, said before the business thoroughly split, users won’t see too much of a difference. He said, “as early as in Microsoft before investment, we have to formulate the relevant business rules. The split this mainly is the change in the structure of the company, not the specific operation of two business have too big impact.”

Huseby temporarily didn’t disclose further information about the breakup of the business.

Via: WSJ