Business

Barnes & Noble eyes Nook options

  • 5 January 2012
  • From the section Business
Nook e-reader
The bookseller may split off its e-reader division

US bookseller Barnes & Nobel has said it is considering options for its Nook e-book division.

The firm also said its losses for the year would be larger than expected due in part to the cost of investing in new e-readers.

The company's shares fell 23% after the announcement before recovering slightly.

Sales of the Nook were up 70% on a year ago in the nine weeks to the end of September, according to the retailer.

However it said sales of its new 'Simple touch' device were lower than expected.

Value

Barnes & Noble lowered the full-year sales forecast for the Nook business to $1.5 billion (£968m) from $1.8 billion.

"We see substantial value in what we've built with our Nook business in only two years, and we believe it's the right time to investigate our options to unlock that value," chief executive William Lynch said in a statement.

The company has benefited from the demise of its rival, Borders.

In its latest statement the firm said Borders' liquidation would boost annual revenue by $210 million to $250 million.

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