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He added that the Nook segment and the physical stores drove traffic to each other and needed to remain in partnership.
Mr. Lynch made his remarks in a conference call with analysts shortly after Barnes & Noble reported a 26 percent decline in the fiscal third quarter for the Nook segment, which includes digital tablets and e-readers.
The company's Nook segment is in the red.
The Nook segment of B&N saw year over year quarterly revenues decrease 41.3% from 2013 levels to $64 million.
B&N briefly detailed an upcoming licensing deal that's designed to "significantly reduce losses in the NOOK segment by limiting risks associated with manufacturing".
The Nook segment, which includes ereaders, digital content and accessories, had revenues of $311 million during the holiday period – or 12.6percentt down from a year ago.
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Under this new deal announced last April, B&N will combine its College and Nook segments with the two companies setting patent litigation in relation to the Android-powered Nook tablets.
If Barnes & Noble doesn't go for G Asset Management's plan to take over a controlling share of the full company, the investment firm said it has another pitch: to acquire 51% of Barnes & Noble's Nook e-reader segment.
This comes alongside word that Nook device sales and segment revenues fell sharply year over year.
Barnes & Noble denies the reports, with CEO William Lynch stating today that the company is adjusting the Nook strategy and righting the segment's cost structure.
Barnes & Noble said it was considering reporting Nook-related sales as a separate business segment, and added that it was in talks with potential partners to expand the Nook's presence overseas, a vastly untapped opportunity for book publishers and retailers.
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