I wonder how much of those $329 million is "selling" and how much is "administrative expense".
Quote:
Originally Posted by Kali Yuga
If the DoJ settlement goes through, then Amazon can discount huge swaths of ebooks. Either B&N will have to cut prices and thus sacrifice profits to match, or they'll lose sales.
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Profits? What profits?
Do they *have* profits to sacrifice?
I'm thinking they first need to cut their administrative expense (33%?!!) category so they can actually register some profits.
Better yet, cut Nook loose.
Run an IPO to recoup some cash and cut direct ties (keeping a big stake, of course) so their B&M financials can stand on their own. (If they can; when I see "Hollywood accounting" categories like "administrative expense", my first thought is "cost-shifting".)
If their B&M operation is as solid as they make it out to be, the OldCo B&N would be instantly home free and the "money sink" Nook would be somebody else's problem.
Plus, they would get Amazon off their back.
(The Waterstone's "move to block" suggests Amazon smells blood and will be pressuring B&N on all fronts until they stop "annoying" them.)
