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Originally Posted by fjtorres
They still have a lot of Nook equity value to fritter away.
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The Nook business has no "equity."
The Nook project has never turned a profit. If it was spun off today, it'd have a handful of assets and massive debts.
Quote:
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Originally Posted by fjtorres
Since Nook started with a valuation of US$1.8 Billion (on a basis of 25% of the US ebook market)...
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That's not its "valuation." That's a wild guess.
B&N's current valuation -- its
real valuation, also known as market cap -- is $800 million. It's been bouncing around the $1 billion mark since 2009. That's the Nook division
and the stores.
Quote:
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Originally Posted by fjtorres
it'll take even the Riggio gang a few years to burn through the rest of the $600 million Microsoft money and the $90 million Pearson money.
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Try "three years" -- assuming they get the second half of the investment, instead of getting bought out by Microsoft.
The Nook business alone currently burns $50 million a quarter, and got worse instead of better in Q4.
Quote:
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Originally Posted by fjtorres
Plus however much they can get out of the Random Penguin, HCSS, and the rest of the BPHs.
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The only thing they can "get out" of big pubs is more lenient credit terms. If the big pubs invest in B&N, they'd be facing a major antitrust challenge with a DOJ hostile to the publishers.
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Originally Posted by fjtorres
Assuming their marke share actually dropped to 20%....
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If the Nook business loses ground, it won't be worth jack. Microsoft will pick it up for a song, and integrate it into its mobile platform.