Barnes & Noble took a step back from the tablet market this week, announcing plans to spinoff its struggling Nook lineup. The company says both businesses will continue to run independently, and the separation should be finalized by early 2015.
The book-seller announced its decision on Wednesday as part of its fourth quarter fiscal earnings report for 2014. While Barnes & Noble managed to increase its consolidated revenue by 3.5 percent, the Nook Media business continued to struggle. Total revenue from the e-readers dropped by 22.3 percent from the previous quarter and 35.2 percent for the year.
Still, the company is optimistic when it comes to Nook Media — which Microsoft still has a stake in. Barnes & Noble CEO Michael P. Huseby claiming both businesses will perform better on their own. “We fully expect that our Retail and NOOK Media businesses will continue to have long-term, successful business relationships with each other after separation,” he said. Clearly there’s still going to be some cross-promotion between the two companies.
The news isn’t that surprising considering the segment has struggled to compete against Kindle and other eReaders for a while now. Most recently, Barnes & Noble had tapped Samsung to launch a special version of the Galaxy Tab 4 with pre-loaded Barnes & Noble content. Whether or not that will help save what remains of Nook Media remains to be seen.