With Nook System Gross sales Down 60% On The Yr, B&N And Microsoft Finish Partnership
Barnes & Noble as we speak introduced the termination of its business settlement with Microsoft surrounding the Nook enterprise. This comes alongside phrase that Nook system gross sales and phase revenues fell sharply yr over yr. B&N states that ending the partnership provides the corporate larger “operational and strategic flexibility.” Not companions within the Nook enterprise, Microsoft is relieved of any duties to fund or help the model.
The 2 corporations entered into the partnership two years in the past with Microsoft initially investing at the least $300 million to create Nook Media. An SEC submitting reveals that B&N is shopping for again Microsoft’s 17.6 % place within the firm for simply $sixty two million.
This partnership was created after B&N refused to pay Microsoft patent royalties for its Android-based mostly readers. However nothing substantial ever materialized from the deal. Final March the 2 corporations revised their settlement, paving the best way for right now’s announcement and a cope with Samsung.
Over the summer time B&N teamed up with Samsung to supply a Nook-branded pill. However apparently even Samsung couldn’t assist the dying e-reader pioneer.
The Nook model had been struggling for a number of years, however the firm immediately introduced dire information. The Nook phase of B&N noticed yr over yr quarterly revenues lower forty one.three% from 2013 ranges to $sixty four million. Gadget and equipment gross sales fared even worse, dropping sixty three.7% from final yr. Even Nook digital content material gross sales dropped 21.2% to $forty five.2 million for the quarter.
Barnes & Noble had jumped into the e-reader waters shortly after Amazon. Its first Nook e-reader was a professional contender and lots of thought the enormous bookseller had an opportunity to face tall towards Amazon because of its large retail community. However the bookseller couldn’t convert the foot visitors into gross sales.
In June 2014 B&N introduced that it might spin the Nook model off, forming a separate firm. It had hoped to finish this transition through the first quarter of 2015, however in accordance with at present’s information, the separation won’t be carried out till months later — that’s, in fact, if there’s nonetheless something left to spin-off.