NEW YORK, NY - AUGUST 20: A Barnes & Noble bookstore is viewed on August 20, 2013 in New York City. After announcing poor first quarter earnings, the struggling book bookstore's shares fell nearly 16% in morning trading. Barnes & Noble's Nook e-reader also saw revenue down more than 20%. (Photo by Spencer Platt/Getty Images)
(FILES) A Barnes & Noble bookstore is seen in this April 30, 2012 file photo in Washington,DC. US bookseller Barnes & Noble said September 25, 2012 it would launch a video service with films and television programs which can be purchased by owners of its Nook tablet in the United States and Britain. The service to debut later this year will include 'blockbuster movies, classic films and original TV shows from major studios' for viewing on tablets, televisions or smartphones. Participating studios include HBO, Sony Pictures Home Entertainment, Starz, Viacom, Warner Bros. and Walt Disney. AFP PHOTO/KAREN BLEIER / FILES (Photo credit should read KAREN BLEIER/AFP/GettyImages)
Employees Eleanor Thibeaux, left, and Korin McGinty look at a cover for the Barnes & Noble Inc. Nook Tablet at a store in Emeryville, California, U.S., on Thursday, Feb. 16, 2012. Barnes & Noble Inc. is scheduled to release third-quarter earnings on Feb. 21. Photographer: David Paul Morris/Bloomberg via Getty Images
Barnes & Noble Inc. Nook electronic readers are displayed for a photograph during an event in New York, U.S., on Tuesday, May 24, 2011. Barnes & Noble Inc., the target of a $1 billion bid from Liberty Media Corp., unveiled a smaller, lower-cost Nook in an effort to boost its share of the growing e-book market. Photographer: Andrea Renault/Bloomberg via Getty Images
SAN BRUNO, CA - FEBRUARY 28: A general view of a Barnes and Noble bookstore on February 28, 2013 in San Bruno, California. Bookseller Barnes & Noble reported a weak quarter and a 26 percent drop in sales of its Nook e-reader to post a 8.8 percent decline in revenue and a net loss of $6.1 million, or 18 cents a share, compared to a profit of $52 million, or 71 cents a share one year ago. (Photo by Justin Sullivan/Getty Images)
William Lynch, chief executive officer of Barnes & Noble Inc., holds a Nook tablet during an exclusive Bloomberg Television interview in New York, U.S., on Tuesday, Nov. 13, 2012. Lynch discussed the company's performance, outlook and the Nook tablet. Photographer: Victor J. Blue/Bloomberg via Getty Images
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NEW YORK (AP) - Barnes & Noble is going to split its retail and Nook Media businesses into two separate public companies as it looks to boost shareholder value.
The bookseller's stock jumped more than 7 percent in Wednesday premarket trading.
The company's retail business includes its bookstores and BN.com businesses. Nook Media, in which Microsoft Corp. is an investor, houses the digital and college businesses of Barnes & Noble.
Barnes & Noble has been trying to turn itself around as competition from discount stores and online retailers toughens, and as readers shift away from traditional books to digital formats.
The company spent years investing heavily in its Nook e-book reader and e-book library, but they struggled to be profitable. In December, Barnes & Noble said it was evaluating the future of its tablets, but it still offered a new non-tablet e-book reader during the holiday season.
The New York-based chain, which announced earlier this month that it was teaming with Samsung to develop Nook tablets, said that its board has approved the separation plans. It hopes to complete the separation by the end of 2015's first quarter.
Barnes & Noble Inc. also reported its fiscal fourth-quarter loss narrowed to $36.7 million, or 72 cents per share, from a loss of $114.8 million, or $2.04 per share, a year earlier. Revenue for the period ended May 3 edged up to $1.32 billion from $1.28 billion.
Analysts surveyed by FactSet expected a loss of 49 cents per share on revenue of $1.19 billion.
Looking ahead, the company anticipates that fiscal 2015 sales at bookstores and college stores open at least a year will decline in the low-single digits.
Shares of Barnes & Noble rose $1.50, or 7.3 percent, to $22.06 before the market open.