Barnes & Noble is considering separating their Nook business due to high losses, the Wall Street Journal reports. The Nook has been successful, but very costly, and Barnes & Noble has warned investors that full year results would reveal greater losses than expected.
Barnes & Noble shares plummeted nearly 24% in Thursday morning trading, but CEO William Lynch maintained his faith in the company’s tablet:
We see substantial value in what we’ve built with our Nook business in only two years, and we believe it’s the right time to investigate our options to unlock that value.
Barnes & Noble reported that their sales increased by 70% this holiday season, with the Nook Tablet exceeding expectations, even though sales of the Nook Simple e-reader fell below its target.
