Check Out Our New Look

Barnes & Noble Shares Rise On Plan To Separate Stores From Nook Media

By | Wednesday June 25, 2014 @ 6:13am PDT

Barnes & Noble Shares Rise On Plan To Separate Stores From Nook MediaThe stock is up 7.3% in pre-market trading after the book retailer said that it plans to split Nook Media into a separate, publicly traded company. The businesses “will have the best chance of optimizing shareholder value if they are capitalized and operated separately,” Barnes & Noble CEO Michael Huesby says. The plan still needs to be approved by regulators, and the company says it could change course if  it can’t raise enough funding or the markets shift. B&N has hired Guggenheim Securities to provide financial advice, and Cravath, Swaine & Moore to handle legal matters.
Read More »

Comments (0)

Barnes & Noble To Offer Co-Branded Nook With Samsung

By | Thursday June 5, 2014 @ 6:54am PDT

Barnes & NobleThe book retailer’s shares are up 3.4% in early trading after it announced a plan to offer its software in Samsung Galaxy Tab 4 Nook tablets, enabling Barnes & Noble to lessen its exposure to its Nook tablets that have struggled to keep up with rivals including Apple’s iPad and Amazon’s Kindle.  A 7-inch version of the Samsung tablet with Nook will be out in August and sold at Barnes & Noble stores and its website. The chain will continue to offer its Nook GlowLight e-reader. But CEO Michael Huesby says that the collaboration means B&N can “reduce its exposure to the substantial cost structure and other financial commitments” from tablet production and focus on “acquiring and delivering the best digital reading experience to grow Nook content sales.” B&N has agreed to buy 1M of the tablets in the first year after they hit the shelves — possibly going to 15 months if they don’t meet “certain sales thresholds” — it says in an SEC filing.  The companies have a two-year agreement. In addition to the Samsung announcement, Nook has agreed to move from its 208,000-square-foot facility in Palo Alto to a new 88,000-square-foot office in Santa Clara while the Barnes & Noble College digital education employees move to a facility in Mountain View. That will reduce annual occupance expenses by $10M, and future lease commitments by $102M.

Comments (0)

Barnes & Noble Shares Spike After Investment Firm Proposes Takeover

By | Friday February 21, 2014 @ 10:55am PST

Barnes & NobleThe stock is up 7.5% to about $18 after G Asset Management disclosed that it has offered to pay $22 a share for 51% of the retail book chain — or $5 a share for 51% of the Nook tablet and e-reader business. The investment firm says that its offers are contingent on its ability to obtain financing, due diligence and — in the bid for the whole company – access to its credit facility and cash on the balance sheet. Barnes & Noble confirms that it has received the proposal, but declined to comment. G Asset Management says that in November it made an offer that valued B&N at $20 a share. “In that proposal, GAM suggested that the company should immediately separate the unprofitable Nook segment from the college and retail segment and recommended commencing a rights offering for the Nook segment to existing shareholders,” it says. The firm says it’s still “extremely confident that if the Nook segment is separated from the profitable retail and college business, substantial shareholder value would be created.” B&N is scheduled to talk with analysts on Wednesday about its financial performance at the end of 2013.

Comments (1)

Barnes & Noble Shares Rise On Report Of Nook-Related Layoffs

By | Monday February 10, 2014 @ 10:43am PST

How badly do Barnes & Noble investors want the retailer to ditch its struggling Nook tablet and e-reader business? NOOK logoThe company’s shares shot up 7.6% today, with heavy volume, after Business Insider reported that it laid off the unit’s hardware engineers. The company says that it didn’t fire the entire staff, but acknowledges that jobs have been eliminated across the organization. “We’re not going to comment specifically on those eliminations,” B&N says. “We believe we have a strong management team in place at Nook, having recruited significant new talent. The new Nook management team is focused on managing the business efficiently so that it becomes financially strong while at the same time aggressively moving to drive revenue growth.” Last month B&N reported that Nook revenues – which include digital content, devices and accessories — fell 60.5% to $125M in the nine-week holiday sales period that ended on December 28. Devices and accessories fell 66.7% to $88.7M which the company attributed to “lower unit selling volume and lower average selling prices.” Digital content fell 27.3% to $36.5M “due to lower device unit sales and lower average selling prices.” CEO Michael Huseby notes that B&N had no new tablets this holiday season, a tough comparison with 2012 when it had two. 

Comments (1)

Barnes & Noble’s Sales Fell Over Holiday Season, With Big Declines For Nook

By | Thursday January 9, 2014 @ 9:14am PST

The company’s position appears to be, it could have been worse. Barnes & NobleBarnes & Noble’s bookstores and online service generated revenues of $1.1B in the nine weeks ending December 28, it says today. That’s down 6.6% vs the period last year. But most of the decline is due to store closures. At stores open at least a year,  revenues just fell 0.2% not including Nook tablets and e-readers. “We are pleased with our holiday sales results, especially our core comparable bookstore sales, which were essentially flat and an improvement as compared to the first half of the year,” newly named CEO Michael Huseby says. It’s harder to sugar-coat the story at Nook. Its revenues – which include digital content, devices and accessories — fell 60.5% to $125M. Devices and accessories fell 66.7% to $88.7M which the company attributes to “lower unit selling volume and lower average selling prices.” Digital content fell 27.3% to $36.5M “due to lower device unit sales and lower average selling prices.” Huseby notes that B&N had no new tablets this year, a tough comparison with last year when it had two.  Without new products “we executed our plan to sell through our existing high-quality devices.” The company will have more to say on February 27 when it discloses its fiscal Q3 financials. 

Comments (8)

Barnes & Noble Posts Wider Q1 Losses, Chairman Suspends Plans To Buy Stores

By | Tuesday August 20, 2013 @ 6:22am PDT

Barnes & NobleBarnes & Noble was down in pre-market trading this morning as it reported fiscal 2014 Q1 earnings. The company posted a drop in revenues of 8.5% to $1.3B for the quarter ended July 27. It also reported a consolidated net loss of $87M, or $1.56 per share, compared to a loss of $39.8M, or $.76 per share, in the prior year. The wider loss was driven by a decline in EBITDA, as well as higher income tax expense, it said. Also, B&N said its chairman, Leonard Riggio, has suspended his efforts to make an offer for the company’s retail business. Riggio said, “While I reserve the right to pursue an offer in the future, I believe it is in the company’s best interests to focus on the business at hand. Right now our priority should be to serve the more than 10 million customers who own NOOK devices, to concentrate on building our retail business, and to accelerate the sale of NOOK products in our stores, and in the marketplace.” On the retail side, which includes stores and, the bookseller notched $1B in revenues for a 9.9% drop. The company attributed the decline to a comparable store sales decrease of 9.1% for the quarter, store closures and lower online sales, which it said were in line with expectations. In the same period last year, B&N had an especially strong lineup that included the The Hunger Games and Fifty Shades Of Grey trilogies.

The NOOK businesses reported revenues of $153M for the quarter, a decrease of 20.2%. Device and accessories sales were $84M, down 23.1%. Digital content sales hit $69M, shaving off 15.8% compared to a year ago. Read More »

Comments (4)

Barnes & Noble Shares Dip After CEO Shake-Up

By | Monday July 8, 2013 @ 4:41pm PDT

The raft of executive changes at Barnes & Noble announced today include a new CEO for its NOOK e-reader division after company CEO William Lynch resigned — effective immediately. The board of directors tapped Michael Huseby as CEO of NOOK Media LLC and president of Barnes & Noble; Lynch’s title has not been filled, while the NOOK CEO post is newly created. Max Roberts, CEO of Barnes & Noble College, will continue to lead the digital education strategy and report to Huseby. Huseby and Mitchell Klipper, CEO of the Barnes & Noble Retail Group, will report to B&N executive chairman Leonard Riggio. The changes come after the retailer reported disappointing financials for the three months that ended in April, along with an $18.3M charge to account for weak sales of its NOOK tablets and e-readers. That unit lost $108M, or -34%, during the quarter. The company said during the earnings call that it will “significantly reduce losses” in the business by finding partners to help make its color tablets. “We are taking big steps to reduce the losses in the Nook segment, as we move to a partner-centric model in tablets and reduce overhead costs,” Lynch said at the time. Shares of Barnes & Noble finished Monday mostly flat at $17.66, then dropped 4.6% in after-hours trading. Read More »

Comments (7)

Barnes & Noble Shares Fall On Weak Earnings And NOOK Impairment Charge

By | Tuesday June 25, 2013 @ 6:06am PDT

Barnes & NobleThe retailer’s stock price is down about 10% in pre-market trading after it released disappointing financials for the three months that ended in April, along with an $18.3M charge to account for weak sales of its NOOK tablets and e-readers. Barnes & Noble had a net loss of $118.6M in the quarter, vs a $56.9M loss in the period last year, on revenues of $1.28B, -7.4%. The top line was below analyst expectations for $1.33B. The net loss at $2.11 a share — including one-time expenses — contrasts with forecasts for a 99 cent loss. B&N says that it is evaluating some previous financial reports “which may result in a revision” although it doesn’t believe that the amounts will be material. The NOOK business was clearly a sore spot with revenues of $108M, -34%. The company says that it will “significantly reduce losses” in the business by finding partners to help make its color tablets. Revenues for retail book sales fell 10% to $948M due in part to store closures and a drop in online sales — and what it says were tough comparisons to last year which had strong sellers with The Hunger Games and Fifty Shades Of Grey. Read More »

Comments (2)

Barnes & Noble Shares Rise On Speculation About Deals And Changes For The NOOK

By | Monday May 20, 2013 @ 12:26pm PDT

Barnes & NobleThe book retail chain’s shares are up 8.1% in mid-afternoon trading, making it one of the day’s biggest gainers in the media pack. Barron’s appears to be largely responsible for the move after it seized this weekend on reports that Microsoft might be willing to pay $1B for Barnes & Noble‘s NOOK tablet and e-reader platform. “It’s possible Microsoft may bid for Nook or the whole company, and there could also be interest from Liberty [Media]” which already owns 17% of Barnes & Noble, Barron’s says. Deals could send shares up as much as 50% the magazine estimates. The Microsoft rumor took off two weeks ago after Techcrunch cited “internal documents” that confirmed an offer. That sent shares to a 52-week high of $23.71. But enthusiasm fizzled last week when website Insider Monkey reported that a “highly placed source inside Microsoft” said an acquisition “is not happening in the foreseeable future.” That hasn’t put speculation about a big deal to rest. Founder Leonard Riggio has said that he might make an offer for the retail stores, although he hasn’t made it yet. Meanwhile Techcrunch yesterday cited “a source close to the matter” who says that Barnes & Noble is preparing to add a web browser, email, and apps to the Nook Simple Touch e-readers — potentially a big boost in functionality for a $79 device. The company recently … Read More »

Comments (0)

NOOK Woes Contribute To Barnes & Noble Fiscal Q3 Loss

By | Thursday February 28, 2013 @ 6:44am PST

Barnes & NobleThe book retail chain has a bleak story for Wall Street this morning. It reported a net loss of $6.1M for the three months that ended in January, down from a $52M profit a year ago, on revenues of $2.2B, -8.8%. Revenues missed analyst expectations for $2.4B. And with a dividend on preferred shares thrown in, the company generated a net loss of 18 cents a share — a contrast to the 54 cent profit analysts anticipated. The NOOK results continued to disappoint. It generated $316M in sales in the quarter, down 25.9% from a year ago, with a cash flow (EBITDA) loss of $190.4M, worse than last year’s $82.8M loss. The results include $21M for returns, and $15M in promotional allowances. As a result, Barnes & Noble took a $59M writedown on its NOOK inventory. It says that it is “calibrating its business model and has implemented a cost reduction program that the company projects will significantly reduce NOOK’s expenses.” CEO William Lynch says that the company remains committed to the tablet and e-reader business. In the main retail bookstore business, sales decreased 10.3% to $1.5B although EBITDA increased 7.3% to $212M. Not including NOOK sales, revenues at stores open at least a year were down 2.2%. This week B&N founder Leonard Riggio said he may offer to buy the stores.

Comments (5)

Barnes & Noble Shares Battered After It Reports Weak NOOK Sales

By | Thursday February 14, 2013 @ 9:39am PST

Barnes & NobleThe stock is down 7.3% at midday following the book chain’s warning last night that there’s bad news ahead regarding its NOOK e-readers and tablets. It now forecasts that NOOK revenues for the fiscal year that ends in April will come in below $3B, with a cash-flow (EBITDA) loss that will be “greater than it was in fiscal 2012.” That contradicts Barnes & Noble‘s assurance last month that the NOOK unit would generate revenues of about $3B, with a cash flow loss “at a comparable level to fiscal year 2012.” And it makes 2013 the third straight year that Barnes & Noble will miss its guidance, Maxim Group analyst John Tinker notes. The NOOK business “is proving to be expensive — and with slowing revenues makes spinning it off to tech investors harder,” he says. “At some point the company has to quantify the amount it is prepared to lose.” The company says it will report earnings for the three months ending in January on February 28, later than it tentatively planned. B&N owns about 78.2% of the NOOK Media subsidiary, while Microsoft controls 16.8% and Pearson has 5%.

Comments (12)

Barnes & Noble Reports Dreary Holiday Sales Results With No Help From NOOK

By | Thursday January 3, 2013 @ 8:13am PST

So much for the hope that price cuts and favorable reviews would enable Barnes & Noble‘s NOOK tablets and e-readers to keep up with comparable products from Apple, Amazon, and Google. The No. 1 book retail chain says that NOOKs underperformed over the nine-week holiday season while revenues at the overall retail business fell 10.9% to $1.2B. “NOOK device sales got off to a good start over the Black Friday period, but then fell short of expectations for the balance of holiday,” CEO William Lynch says. “We are examining the root cause of the December shortfall in sales, and will adjust our strategies accordingly going forward.” The one saving grace of the numbers is that investors expected them to be worse. B&N shares are up 1.9% in early trading Thursday, after falling 3.9% yesterday. The company says that core sales — not including NOOK products — fell 3.1% over the nine-week holiday period at stores open at least a year. That was better than B&N expected, and means the results for the basic business should be down by low- to mid-single digits for the fiscal year that ends in April. The holiday season decline rises to 8.2% when you factor in the fact that B&N has fewer stores, and had lower online sales. Read More »

Comments (12)

Barnes & Noble Shares Slip After Reporting Mixed Results In Fiscal Q2

By | Thursday November 29, 2012 @ 6:48am PST

Barnes & NobleThe stock is down about 6.5% in early trading following the leading bookstore chain’s earnings report that left open questions about whether it can keep up with online rivals led by Amazon that continue to take market share. Helped by $2.8M in dividends received from preferred shares, Barnes & Noble reported net income of $2.2M for the quarter ending in October — up from a $6.6M loss a year ago — on revenues of $1.88B, -0.4%. The revenue figure is slightly lower than the $1.91B that analysts expected. But excluding the dividend, the net loss attributable to B&N of 4 cents a share beat the Street’s forecast of a 6 cent loss. At the retail unit, which includes the bookstores and book sales at, revenues fell 2.9% to $996M. The company says that last year’s numbers were helped after Borders liquidated. But in stores open at least a year, sales (not including its NOOK eReaders and tablets) were up 1.8%. In college textbooks B&N revenues were up 0.4% to $773M. Meanwhile the NOOK operation — which includes the hardware as well as digital content — remains a mixed story: Revenues were up 5.6% to $160.3M but it still generates a cash flow loss as B&N invests in new products and overseas expansion. The company says that NOOK unit sales doubled in last week’s four day Black Friday period vs last year — which matches Amazon’s experience with its Kindles. Read More »

Comments (7)

Barnes & Noble Stock Rises After CEO Tells Investors It’s Undervalued

By | Wednesday October 10, 2012 @ 1:08pm PDT

Shares rose 8.3% to $14.96 this afternoon after CEO William Lynch vigorously argued at a Liberty Media investors’ meeting that stock buyers aren’t giving the book retail chain its due. With a market price of about $884M, the company that generated $7.2B in revenues last year “is undervalued,” he says. There’s a “strong, profitable and vibrant business” in its traditional bookstores, especially as rivals including Borders have closed. Lynch also urged investors to take a closer look at its new Nookmedia LLC partnership with Microsoft. The operation was valued at $1.7B this year when the computer giant invested $300M for a 17.6% stake in an operation that includes B&N’s Nook e-readers and tablets, e-Books, and college-targeted software. B&N’s stock price suggests that “investors are getting Nookmedia for free,” Lynch says. That overlooks the opportunities for the company as it builds its eBook sales, digital subscriptions, and eLearning — which he says has “big plans and announcements coming.”  Lynch also talked up the new Nook HD and Nook HD+ tablets, which have won encouraging reviews ahead of the October 25 ship date. Nookmedia is “a big and growing company in an exploding space,” Lynch says. Liberty owns 17% of B&N.

Comments (1)

‘Fifty Shades Of Grey’ Phenomenon Helps Barnes & Noble Collar Q1 Losses

By | Tuesday August 21, 2012 @ 6:54am PDT

Barnes & NobleShares in Barnes & Noble were trading up ahead of the opening bell today as the company reported fiscal 2013 Q1 results. The bookseller’s consolidated Q1 net loss narrowed 28% to $41M as compared to a loss of $56.6M a year ago. Consolidated revenues were $1.5B, up 2.5% from the year prior. Digital content sales were up 46% while bookstores saw growth thanks in part to market consolidation, but also to the best-selling Fifty Shades Of Grey series. Retail, which includes bricks & mortar outlets and, was up 2% over the same period in 2011 with $1.1B in revenues. Overall, the Nook business unit was essentially flat compared to last year with $192M in revenues. On Monday, Barnes & Noble said it would begin offering the Nook e-readers and digital content in the UK. Products will be available through new online storefront beginning in mid-October, and also through partnerships with leading retailers.

Comments (1)

Barnes & Noble Shares Dive As It Considers Sale Of Nook E-Reader Business

By | Thursday January 5, 2012 @ 8:09am PST

The stock is down 25% in early trading following the book store chain’s announcement that it may unload or spin off its Nook operation. “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,” CEO William Lynch said. The company added that it’s talking to ”strategic partners including publishers, retailers and technology companies in international markets that may lead to expansion of the Nook business abroad.” There’s no timetable for the review of the Nook business, and Barnes & Noble says that it doesn’t plan to comment on the process “unless and until a decision is made.”

Barnes & Noble says that during the nine-week holiday season total sales for the Nook line were up 70% vs the same period last year. But while demand for its new Nook Tablet was strong, sales for its Nook Simple Touch “lagged expectations, indicating a stronger customer preference for color devices.” B&N updated its earnings guidance saying that it now expects cash flow of as much as $180M in the fiscal year that ends in April — down from its forecast in December for as much as $250M. “The change in guidance is due primarily to a shortfall in the expected sales of Nook Simple Touch, as well as additional investments in growing the Nook business, such as advertising to support new products and international expansion … Read More »

Comments (8)

John Malone: Liberty Media To Become “As Complicated As We Need” To Be

Investors seemed to like what they heard at today’s annual confab for John Malone’s Liberty Media. Shares of the hodge-podge of companies it either owns or controls were up on a day when the market was shaken by new fears that the European debt crisis will widen. Liberty Starz ended the day +1% and Liberty Capital was +0.5% after their parent said it will combine the two tracking stocks into a single asset-based security. But Live Nation was +6.7%, Barnes & Noble was +5%, and Sirius XM  was +4.8% following CEO presentations to the Street.

Malone was more subdued than usual. But the executive who became a billionaire on the back of his devilishly complex deals — often to help him avoid paying taxes — got a chuckle in his response to a question about whether the changes in his tracking stocks will make their businesses confusing for investors. “We’ll get as complicated as we need to get to highlight value.” he said.

Sirius XM’s Mel Karmazin won the biggest laughs, though, with Read More »

Comments (0)

Netflix Updates Android Interface To Improve Video Browse And Search

By | Tuesday November 15, 2011 @ 5:14am PST

LOS GATOS, Calif., Nov. 15, 2011 – Coinciding with the first shipments of the Amazon Kindle Fire and Barnes & Noble NOOK Tablet™, Netflix, Inc. (NASDAQ:NFLX) today unveiled a new interface for Android-powered tablets that makes browsing and instantly watching unlimited TV shows and movies streaming from Netflix better than ever.

The redesigned Netflix experience is much more immersive and provides more focus on the growing Netflix catalog by displaying twice as many titles than the previous interface. In addition, through optimization for touch-enabled tablets, Netflix members can swipe through multiple rows of titles with larger artwork. As a result, it is now much easier to discover and instantly watch movies and TV shows on Android tablets.

Read More »

Comments (2)

Amazon’s Kindle Fire Gets An Early Spark, And Mixed Reviews

By | Monday November 14, 2011 @ 11:53am PST

Amazon stoked the hype around its new Kindle Fire tablet by shipping it a day ahead of schedule, the company announced today. That’s a smart move: In addition to the extra PR and customer goodwill it generates, the decision gives the online retailer one more day to sell videos, music, and books that will “offset the weaker margins (or even losses)” it may see this quarter by selling the tablet below cost, Caris & Co analyst Scott Tilghman says. Research firm iSuppli estimates that Amazon spends about $210 to make each Kindle Fire that it sells for $199. No wonder the promotion machine is in high gear: Hulu Plus — which is available on the iPad and Barnes & Noble’s new Nook Tablet — today joined the parade of content companies crowing about their Kindle Fire apps. A Hulu Plus subscription costs $7.99 a month, and can be used on any device that accommodates it. Hulu’s “never-ending mission is to bring you the world’s premium content when, where and how you want,” senior product manager Lonn Lee says in a blog post. Read More »

Comments (3)
More Deadline | Hollywood »