B&N buys out Microsoft's Nook stake

fjtorres · 12-04-2014, 09:59 AM

From the WSJ:
http://online.wsj.com/articles/barne...eal-1417700850

Quote:

The bookstore retailer bought out Microsoft’s preferred interest in Nook for about $120 million in cash and stock, freeing the software giant from further investments in the business.

Barnes & Noble added it expects the planned split of its Nook Media unit from its retail stores to occur by the end of August, behind its initial projection for a separation by March. Ending the partnership would also make it easier for Barnes & Noble to sell the division if it chooses to explore that option.

The disclosure came as Barnes & Noble reported a much weaker-than-expected profit for its November quarter, helping push its shares down more than 13% in early trading.

Quote:

For its second quarter ended Nov. 1, the Nook segment’s revenue fell 41% to $63.9 million, while digital content sales fell 21% to $45.2 million. Device sales fell 64%, though cost-cutting helped stem the division’s loss in the quarter.

Sales at the company’s retail unit, meanwhile, fell 3.6% due partly to store closures.

More at the source.
If link expires, google the headline "Barnes & Noble, Microsoft End Nook Pact".

fjtorres · 12-04-2014, 10:08 AM

When MS bought 17.6% of Nook for $300M in 2012, B&N still claimed 20%+ ebook market share. That valued Nook at $2B and Kindle at about $4B if it were a standalone business.

Today's news puts Nook at 8% market share (or lower) and values Nook media at $680M and Kindle's alleged 60% at about $6B.

Lots of industry changes in the past two years, huh?

pdurrant · 12-04-2014, 11:10 AM

So MS made a loss of over 50% on their investment? Ouch.

doctorow · 12-04-2014, 11:17 AM

Quote:

Originally Posted by pdurrant

So MS made a loss of over 50% on their investment? Ouch.

Blame it on the old management.

ProfCrash · 12-04-2014, 11:25 AM

Kindle only has a 60% share? That would surprise me. Perhaps globally Amazon has a 60% share but in the US I would think that number would be a great deal higher.

jgaiser · 12-04-2014, 11:39 AM

Well, I know I've completely given up on B&N. I cleaned out my ebook files after they removed the download links and haven't been back.

leebase · 12-04-2014, 11:43 AM

The new Msft CEO is smartly dropping non-core businesses. Looks like Samsung will take up the slack as technology partner. I'd like to see the Nook survive.

conan50 · 12-04-2014, 11:59 AM

I've given up on B&N also. Nook seemed like a half-hearted attempt by B&N at ebooks, meanwhile they really just wanted to sell physical books.
I don't expect B&N ebook division to last much longer.

Apache · 12-04-2014, 12:38 PM

Quote:

Originally Posted by jgaiser

Well, I know I've completely given up on B&N. I cleaned out my ebook files after they removed the download links and haven't been back.

Me too and I own and love a Nook HD+.
Baen is my first go to now followed by Amazon and Amazon UK. I have not been on the B&N website since they did this.
Apache

twowheels · 12-04-2014, 12:45 PM

I've been seeing more and more independent bookstores that have a lot more character than B&N. I'm not sure I'd shed too many tears if B&N failed. I think that we're quickly approaching a point where it's ebooks, and a much smaller enthusiast market for paper books, which is better served by independents than mega-chains.

NickyWithNook · 12-04-2014, 12:54 PM

I've been buying most of my books from Amazon lately too. I even just bought a Kindle Fire. I started as a Nook owner because I got one as a gift, but their horrible customer service has not kept me even slightly loyal.

fjtorres · 12-04-2014, 12:56 PM

Quote:

Originally Posted by ProfCrash

Kindle only has a 60% share? That would surprise me. Perhaps globally Amazon has a 60% share but in the US I would think that number would be a great deal higher.

I've seen no semi-credible numbers that put them any higher.
Hachette was moaning that Kindle was 60% in the US and 66% in the UK.
Not even the noisiest "Amazon is a monopolist" detractors have claimed any higher than mid sixties.

I saw reports that Apple was bigger than Nook earlier this year when Nook was still about 10% and Google seems to be approaching Kobo size by the reports among Indies. So figure 12-15% for Apple, 15% for google+Kobo, 8% Nook...

Unless the BPHs are lying about how much of their business is going through Amazon, most of Nook's lost business seems to be going to Apple and Google. Which wouldn't be shocking with iBooks and Play both tied to iOS and Android.

And since Nook hardware is Adept compatible, people moving to google is easy.

Rich_D · 12-04-2014, 03:11 PM

I love my SimpleTouch with Glow (the gray one) and the two times I contacted B&N customer service, they dealt with my issues quickly and efficiently. They did two things to push me away though, bringing out the new nook without an SD card and dropping the download option. I have everything downloaded with the old Nook Study app, but who knows when that will disappear. My future book purchases will be through Google Play, unless B&N has a drastic change of heart and I don't really see that happening.

rcentros · 12-04-2014, 04:20 PM

Quote:

Originally Posted by pdurrant

So MS made a loss of over 50% on their investment? Ouch.

Part of that investment was to stop B&N's anti-trust lawsuit against Microsoft. There was danger (I don't know how serious) that this lawsuit could have blown up Microsoft's patent trolling racket.

rcentros · 12-04-2014, 04:24 PM

So they're going to separate the Nook division from the regular division. So much for one of their early Nook selling features, that you could walk into the store for Nook support.

B&N didn't go into this half-heartedly, but after a couple years it looks like they basically turned tail and gave up and they've been coasting ever since.

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12-04-2014, 10:08 AM	#2
fjtorres Grand Sorcerer Posts: 11,732 Karma: 128354696 Join Date: May 2009 Location: 26 kly from Sgr A* Device: T100TA,PW2,PRS-T1,KT,FireHD 8.9,K2, PB360,BeBook One,Axim51v,TC1000	When MS bought 17.6% of Nook for $300M in 2012, B&N still claimed 20%+ ebook market share. That valued Nook at $2B and Kindle at about $4B if it were a standalone business. Today's news puts Nook at 8% market share (or lower) and values Nook media at $680M and Kindle's alleged 60% at about $6B. Lots of industry changes in the past two years, huh?

12-04-2014, 11:10 AM	#3
pdurrant The Grand Mouse 高貴的老鼠 Posts: 71,843 Karma: 306664726 Join Date: Jul 2007 Location: Norfolk, England Device: Kindle Voyage	So MS made a loss of over 50% on their investment? Ouch.

12-04-2014, 11:25 AM	#5
ProfCrash Tea Enthusiast Posts: 8,554 Karma: 75384937 Join Date: Jul 2010 Location: Somewhere in the USA Device: Kindle1, Kindle DX Graphite, K3 3G, IPad 3, PW2	Kindle only has a 60% share? That would surprise me. Perhaps globally Amazon has a 60% share but in the US I would think that number would be a great deal higher.

12-04-2014, 11:39 AM	#6
jgaiser Omnivorous Posts: 3,281 Karma: 27978909 Join Date: Feb 2008 Location: Rural NW Oregon Device: Kindle Voyage, Kindle Fire HD, Kindle 3, KPW1	Well, I know I've completely given up on B&N. I cleaned out my ebook files after they removed the download links and haven't been back.

12-04-2014, 11:43 AM	#7
leebase Karma Kameleon Posts: 2,945 Karma: 26738313 Join Date: Aug 2009 Device: iPad Mini, iPhone X, Kindle Fire Tab HD 8, Walmart Onn	The new Msft CEO is smartly dropping non-core businesses. Looks like Samsung will take up the slack as technology partner. I'd like to see the Nook survive.

12-04-2014, 11:59 AM	#8
conan50 Fanatic Posts: 593 Karma: 14054112 Join Date: Jun 2014 Device: kindle	I've given up on B&N also. Nook seemed like a half-hearted attempt by B&N at ebooks, meanwhile they really just wanted to sell physical books. I don't expect B&N ebook division to last much longer.

12-04-2014, 12:45 PM	#10
twowheels Wizard Posts: 1,807 Karma: 13416548 Join Date: Nov 2010 Device: Kobo Clara HD, iPad Pro 10", iPhone 15 Pro	I've been seeing more and more independent bookstores that have a lot more character than B&N. I'm not sure I'd shed too many tears if B&N failed. I think that we're quickly approaching a point where it's ebooks, and a much smaller enthusiast market for paper books, which is better served by independents than mega-chains.

12-04-2014, 12:54 PM	#11
NickyWithNook Guru Posts: 750 Karma: 3942770 Join Date: Sep 2011 Location: American living in Australia Device: Kobo Libra Colour, Kindle Fire, Kindle Pwhite (Don't use Nook anymore)	I've been buying most of my books from Amazon lately too. I even just bought a Kindle Fire. I started as a Nook owner because I got one as a gift, but their horrible customer service has not kept me even slightly loyal.

12-04-2014, 03:11 PM	#13
Rich_D Fanatic Posts: 581 Karma: 1314896 Join Date: Mar 2010 Location: Pittsburgh, PA USA Device: Android phone, Kobo Glo HD, nook ST with Glo (backup)	I love my SimpleTouch with Glow (the gray one) and the two times I contacted B&N customer service, they dealt with my issues quickly and efficiently. They did two things to push me away though, bringing out the new nook without an SD card and dropping the download option. I have everything downloaded with the old Nook Study app, but who knows when that will disappear. My future book purchases will be through Google Play, unless B&N has a drastic change of heart and I don't really see that happening.

12-04-2014, 04:24 PM	#15
rcentros eReader Wrangler Posts: 7,645 Karma: 50076341 Join Date: Mar 2013 Location: Boise, ID Device: PB HD3, GL3, Tolino Vision 4, Voyage, Clara HD	So they're going to separate the Nook division from the regular division. So much for one of their early Nook selling features, that you could walk into the store for Nook support. B&N didn't go into this half-heartedly, but after a couple years it looks like they basically turned tail and gave up and they've been coasting ever since.

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