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Barnes & Noble considers spinning out $1.5 billion Nook business

International expansion also coming
Barnes & Noble considers spinning out $1.5 billion Nook business

Demonstrating that whatever Amazon is saying, it can echo, book retailer Barnes & Noble is now talking up its own holiday performance.

Compared to 2010, it's sold 70 percent more of its Nook e-readers and tablet family, including Nook Color and the new $249 Nook Tablet.

Interestingly, the company is also happy to point out that sales of the black and white Nook Simple Touch weren't as good as expected, "indicating a stronger customer preference for colour devices," it points out.

Separate for growth

Indeed, the Nook division is performing so well - with $1.5 billion in total sales predicted for FY12 - that Barnes & Noble is considering strategic options, including spinning it off as a separate company.

"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," said William Lynch, Barnes & Noble's CEO.

As part of this drive, Barnes & Noble says it's talking to its partners, including publishers, retailers, and technology companies, particularly those who will enable it to launch the Nook business globally. At present, the devices and service are only available in the US.

No more comment

It's certainly not a done deal however,

"There can be no assurance that the review of a potential separation of the Nook digital business will result in a separation," the company notes.

"There is no timetable for the review, and the company does not intend to comment further regarding the review, unless and until a decision is made."

[source: Barnes & Noble]