Barnes Noble Inc will stop manufacturing its own Nook tablet, marking the end of its expensive attempt to compete with its rivals only deep pockets Amazon.com Inc, Apple Inc and Google Inc in the tablet wars.
top U.S. bookstore chain reported another quarter of dismal results Tuesday, led by a 34 percent drop in sales of Nook and e-books business units, and said that it's expected that sales continue to decline this fiscal year to its libraries.
shares were down 17.5 percent to $ 15.53 in afternoon trading.
Barnes and Noble will also develop black and white readers like the Nook Simple Touch, which, she says, more suited to serious readers who are its customers, rather than tablets.
But it is looking for a partner to its corners, while recognizing that the competition is too tough to fight alone.
"We want to get away to take on all that risk," Barnes & Noble CEO William Lynch told investors during a call. "It was very capital intensive to build our own tablets.
For the year ended April 27, Barnes Noble has lost $ 475 million on the Nook business and he had repeatedly to slash prices on the shelves and Nook accept returns from retailers able to sell the units.
retirement has raised new questions about the ability of Barnes Noble Nook sell its Media, established in early 2012 and consists of Nook and its chain of bookstores in college. The ability of the Seller to seek strategic alternatives and its position in the market for e-books are also matters of concern.
Barclays Capital analyst Alan Rifkin said in a research note losses reduce the likelihood Barnes Noble to find a buyer for its digital activity.
L last year, Microsoft Corp. has acquired a 17.6 percent Nook Media and British publisher pearson plc bought 5 cent.Barnes Noble owns the rest.
Barnes Noble shares rose in May on unconfirmed reports that Microsoft wanted to buy Nook.
Barnes & Noble, the largest U.S. bookstore chain, has launched the first version of the Nook e-reader in 2009 to take the leader on the market of Amazon.com Inc. Kindle and get a place in the market growth Quick e-books.
E-books now account for about 20 percent of book sales, according to the Association of American publishers. Compared to estimates of Barnes Noble, it has a share of 27 percent of the U.S. market for electronic books.