The Nook should help usher in a Barnes & Noble (BKS) in the future. It does not look like it. Now, the book chain chairman and biggest shareholder, Leonard Riggio, said in a regulatory filing that he was interested in buying the company's stores and website, but no e-reader business.Riggio, and many others, has hopes that Barnes & Noble can compete with, if not surpass rivals, first Amazon (AMZN) started and then (AAPL) Apple iPad. The belief that Barnes & Noble will make the transition to the digital era, and then developed in it, is a factor Riggio is to restrain activist billionaire investor Ron Bürkle 2010. The next year, the company introduced the black-and-white e-reader recently, the All-New Nook, designed by Robert Brunner, who has worked at Apple. Both Microsoft (MSFT) and Pearson (PSO) taking a minority stake in Media Nook last year.In January 2012, William Lynch, CEO of the company, said: "We have a Nook business growing rapidly year-over-year and should be about $ 1, 5 billion in sales over this fiscal year. Between continued projected growth in the U.S., and the opportunity for Nook internationally in the next 12 months, we expect the business to continue to measure rapidly in the future. "But, as the attention of computer companies and consumers will be full-feature tablet, Barnes & Noble has struggled to achieve a deeper-pocketed rivals. Compete in the market with the Nook and Nook Color Tablet, a device with a 7-inch screen running both versions (GOOG) Google's Android operating system. And this game is not just about the device, it is about developing a comprehensive ecosystem services and applications. Barnes & Noble just does not have all the assets needed to build something like that, Amazon, Apple, and Google clearly will do. Booksellers also bested the previous e-reading, as Amazon has built a catalog of titles exclusive to light with the publication of various divisions and e-book lending library, which is available free to members of its Prime shipping service. Barnes & Noble now find themselves in a fight can not hope to win. Companies like Apple, Google, Amazon, and Microsoft are jockeying for position in the rapidly growing tablet market. Amazon sells the kindle fire costs, Google could easily open the store to show the growing variety of hardware, including the Nexus tablet 7. Microsoft is spending millions to market the tablet surface. And with the iPad Mini, Apple has recovered quickly from the ceding tablets.Not market for smaller, 7-inch surprisingly, in front of them withering competition, slowing momentum Nook. This division had sales of $ 160 million in the quarter ended in October. Revenue the company reported in February 28.So what future Nook hypercompetitive environment? With shrinking revenue and same-store sales, retailers can not make the kind of investment necessary to compete with the big boys. If the Nook division was spun out, the company has long contemplated, probably one of the deep-pocketed investors, Microsoft will double down control, shift the operating systems from Android to Windows 8, and then use it to try to make further inroads in the tablet market . It's hard to imagine another situation where live many ironies on.There Nook to go here. A decade ago, Microsoft pioneered the market with touch screen enabled tablet stylus running Windows. But Microsoft did not quite get it right and do not take the iPad tablet market. Similarly, back in the 1990's, Barnes & Noble to sell one of the first mainstream e-reader, ebook Rocket. If it does not sell, Riggios cover their initial efforts in e-reading and then got turned on by the introduction of flat-footed in 2007. In a sense, Microsoft's Nook brand will provide the perfect synchronicity of endangered seal two holding hands in the middle of opportunities shocking and inevitable market moves away from them.
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