Barnes & Noble Splitting E-Reader Into Separate Business

TIME

Barnes & Noble is splitting its digital Nook enterprise off from its physical bookstore business, abandoning what analysts once saw as the company’s best chance of surviving competition from the likes of Amazon, which sells books, digital e-readers and a plethora of other goods and services.

The spinoff of the company’s Nook business will be complete by the end of the first quarter of the next calendar year, Barnes & Noble said in a statement.

Barnes & Noble’s Nook business was a latecomer, introduced in 2009 two years after Amazon introduced its first Kindle reader. Barnes & Noble’s brick-and-mortar bookstore businesses is still profitable; its retail segment saw a 0.8% increase in revenue to $955.6 million for the quarter.

But the Nook has dragged on the company’s revenue as the device posted a 22% decline in revenue to $87 million in the last quarter. The company as a whole posted…

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