http://www.nytimes.com/2014/12/05/business/media/barnes-noble-ends-partnership-with-microsoft-over-nook.html 2014-12-04 16:40:57 Barnes & Noble Ends Partnership With Microsoft Over Nook The company, which has struggled to compete with Amazon and other online retailers, said it had bought out Microsoft’s entire preferred interest in its Nook e-reader business. === Barnes & Noble The company, which has struggled to compete with Amazon and other online retailers, said it had bought out Microsoft’s entire preferred interest in its Nook business. In 2012, Microsoft had invested $300 million for 17.6 percent stake in the Nook e-book reader, but the companies scaled back their partnership earlier this year. A few months ago, the retailer announced plans to separate its struggling Nook division from the retail business, splitting into two separate companies, with one made up of its retail stores and website, and the other arm with its college bookstores and Nook division. Barnes & Noble said Thursday that its split with Microsoft would provide “a clearer path” to split the two businesses, which it said could take place by the end of August 2015. Barnes & Noble’s unwinding of its Microsoft partnership comes amid continued financial difficulty for the bookseller. For the quarter that ended Nov. 1, the second in its 2015 fiscal year, Store closings have steadily continued at Barnes & Noble, leaving the company with a base of around 650 retail stores. A shrinking store footprint probably drove down sales at the company’s retail unit, which fell 3.6 percent in the quarter. Investors seem to be optimistic about the company’s cost-cutting efforts and planned split. Barnes & Noble’s shares are up nearly 50 percent this year. Still, sales have continued to fall sharply at the company’s struggling Nook segment. Though Barnes & Noble cut its losses at Nook, thanks to cost-cutting, revenue for the company’s Nook segment fell 41 percent, to $64 million, compared with the previous year, while sales of e-books and other digital content fell 21 percent, to $45 million. The company’s strongest performing segment its college bookstores — showed only a modest gain in revenue, increasing nearly two percent. In the face of declining annual revenue, Barnes & Noble has been experimenting with new strategies. This summer, in an effort to compete with Amazon’s delivery service, Barnes & Noble began partnering with Google Shopping Express in a handful of cities to offer same day delivery for books and other products. The company teamed up with Samsung, which is manufacturing its latest Nook device. Last month, it launched a print-on-demand service for aspiring authors, to claim a corner of the growing self-publishing business. The retailer has also taken new steps to drive foot traffic in its retail stores this holiday season, after two years of declining sales during the nine-week holiday sales period. To draw in book lovers and shoppers for