Why Barnes & Noble Should (and shouldn’t) Spin Off the Nook – Digital Trends – Geoff Duncan

Part of the reason why e-reader ecosystems like Kobo aren’t seeing tremendous levels of success in the U.S. market is that they aren’t associated with a well-known book retailer. (Kobo did have a relationship with Borders, which didn’t work out so well.) These same factors might hurt Barnes & Noble’s efforts to bring the Nook to international markets.

Unfortunately for the Nook, there’s no clear-cut way forward here. If the Nook stays with Barnes & Noble, it’ll remain hobbled by the company’s brick-and-mortar performance. If it spins out, it loses the Barnes & Noble brand. And, meanwhile, Apple and Amazon continue firing on all cylinders.

First, Duncan explains sales revenues, fiscal year predictions, and other money matters to give a backdrop for why B&N is considering separating from the Nook.

Then it comes down to this: separating the Nook from B&N attracts revenues, while on the other hand if the Nook is separated then it may not find the same success with consumers who are attracted to the B&N brand.