By Chelsey Dulaney
Barnes & Noble Inc. said it has terminated its commercial
agreement for its Nook e-reader with Microsoft Corp., a move it
said provides a clearer path toward the potential split of its
business.
Like other brick-and-mortar retailers, Barnes & Noble has
struggled to adapt as book buyers migrated to online retailers like
Amazon.com Inc. and growth of e-books has decreased the market for
physical books.
The company said Thursday that it expects the planned split of
its Nook Media unit from its retail stores to occur by the end of
August. The company had sought to carve out its own niche in the
tablet and e-reader space, but the device failed to catch on,
posting a series of losses.
Microsoft invested in Nook in 2012, but the companies scaled
back their partnership earlier this year.
Shares dropped about 8% premarket and have risen 49% so far this
year through Wednesday's close.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com
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