Barnes & Noble Not Giving Up on Nook Tablets

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Aug. 20 (Bloomberg) -- Bloomberg's Jon Erlichman reports on Barnes & Noble's business strategy. He speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Jon erlichman is in l.a. where he just got off the phone with michael hughes.

What did he have to say?

There are so many questions about what is going to happen with the nook business.

That is in part because of competition.

As you highlighted, what was confusing today was that a couple of months ago william lynch put this idea out there that independently building these devices might not make sense.

Going out and finding a manufacturer could be helpful from a financial perspective.

Here are some the comments he made on a conference call this morning.

Some kind of outsourcing is neither appropriate or smart for the company.

We have announced ban the group of people that are a small part of our expense.

They do a tremendous job and do not deserve to have their jobs outsourced.

In our phone conversation, he highlighted a couple of things.

The idea about independently building them might be misleading because they have a lot of orders that are helping them build these devices.

He also said the big issue was they made too many.

They got the numbers wrong on the demand.

Specifically highlighted the ipad mini.

The other was that the devices are for a reading audience.

They do not like to use the word tablet.

I like to see them as readers.

That is the market.

What a bart the did -- what about the decision not to go after retail stores?

Did he have anything to say?

It is fascinating.

As chairman, he is aware of what is going on.

What huseby, he found out exactly what his plan was.

When it comes to actually separating these businesses, he says we have prepared to go down that road.

We have taken the steps to do that.

Where we looked at all of the options, financially it sounds, based on what he said, they have not found something that makes sense.

Whether it was a spinoff or somebody interested in buying the business.

The numbers are not adding up.

Microsoft is an investor in nook.

I asked him about that.

We are supposed to look at microsoft as a partner for now.

Obviously this was important for microsoft to get more digital content available.

That is something they continue to do as an investor . they are providing financial assistance to the growth of that business.

Obviously a lot of people are speculating about what could happen with microsoft.

You would think if they looked at all of the options, maybe microsoft likes what it is doing and nothing more than that.

All right.

Jon erlichman, thank you.

This text has been automatically generated. It may not be 100% accurate.

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