Barnes & Noble founder pondering retail buyback, future of Nook unclear
25th Feb 2013 | 23:28
Nook possibly branching out on its own
While Barnes & Noble is already preparing for the worst with the expected losses this year on its line of Nook tablets and e-readers, the company may send the Kindle Fire HD competitor off on its own in what could be its final days.
The company indicated chairman and majority shareholder Leonard Riggio has proposed a buyback of the retail portion of the company, giving some the idea the bookstore and the Nook may soon part ways.
Though B&N has already refuted claims it's planning to ditch the Nook entirely, Riggio's plan submitted to the U.S. Securities and Exchange Commission indicated he's prepared to purchase the brick-and-mortar stores, and makes no mention of bringing the Nook along with it.
The goose is Nook'd
It wasn't that long ago that things were looking up for the Nook, what with Microsoft's $300 million dollar investment in the platform.
Unfortunately, the device posted a $262 million loss in 2012, with Barnes & Noble expecting to lose even more in 2013.
Barnes & Noble has created a special committee consisting of board directors David G. Golden, David A. Wilson, and Patricia L. Higgins to review Riggio's proposal, which will be advised by Evercore Partners and the law firm Paul, Weiss, Rifkind, Wharton & Garrison.
Though nothing is set in stone and the bookseller can reject or negotiate the proposal, it will be interesting to see if the company does decide to spin the Nook off into its own branch.
TechRadar asked Barnes & Noble for comment on the proposal and the possible future of the Nook, and will update this story when we learn more.