Quote:
Originally Posted by geoffwood
Spinning it off into a separate company makes sense as a way to recognize the value of the brand they have built, but it will devalue the remaining Bricks and Mortar operation. I wonder if that can survive without the Nook, or if it will go the way of Borders.
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It's also the best way to adapt to "disrputive technologies," i.e., new technology that really requires a different business model than the company's existing business.
But don't think for a moment that spinning off the nook division as a seperate company means it will be not be paying its profits back to the parent company. My guess is it will be a wholly owned subsidiary, with every penny of profit going back to B&N. At that point, they could close their brick & mortar stores entirely and still be in business - if they do it right.
If they're smart, this has more to do with giving the nook people more freedom to manage their business as they see fit without interference from people with too much experience at a business model that has definitely failed.