Quote:
Originally Posted by fjtorres
Probably.
But there is no guarantee Nook itself would have any money itself.
What the spinoff would achieve is allow Nook to draw investors for itself, free of the drag of the stores. Nook itself might start its independent life with a pile of debt but at least a roadmap to solvency.
Some reports say the stores aren't *big* money losers by themselves; they're just not contributing much if anything to the bottom line. Lots of churn but no progress. And big negative potential.
Meanwhile, Nook's opportunities for expansion need money...
The B&N quandary is they're low on cash and low on prospects, except for Nook.
Which is where the original article was questioning their strategic planning. Part of it is that as a traditional B&M retailer, their management is new to the realities of the Tech business and didn't do their homework, judging by their aggrieved response to the Android patent suit. They seem to have some competent middle managers in the Nook division but the higher-level guys? Not much evidence pro, some con...
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Actually B&N's bookstores are the only part of the company that is still making a nice profit. The reason that the company as a whole makes a loss is that they are investing so much money in their digital Nook business.