Barnes & Noble to spin off Nook unit as sales continue to fall

When it introduced the Nook e-reader in the fall of 2009, Barnes & Noble celebrated it as its answer to Amazon.com and its popular Kindle device. More than four years later, the struggling retailer plans to shed the business once considered its best hope of surviving the digital age.

According to the New York Times, Barnes & noble is splitting its Nook Media division into a separate company.

Investors initially cheered the move, pushing shares in the company up more than 10 percent on Wednesday morning. The elation tapered off, however, and the stock closed up 5.3 percent at $21.65.

Read more from the New York Times.