B&N eliminates their dividend, Stock falls 16%
Feb 23, 2011 [permalink]
In other signs of the times news, B&N's stock dropped 16% yesterday as they announced they were eliminating their dividend. Companies typically only kill their dividend if they're having financial difficulty. The spin they put on it was they did this to "provide the company the financial flexibility to continue investing into its high growth digital strategies," but wall street didn't seem to buy that optimism.
(In other words, it's a troubling sign that they don't have enough cash flow or cash on hand to do whatever it is they need to do.)
The announcement was otherwise mostly about the Nook, and mentioned that "we now sell twice as many eBooks as we do physical books at BN.com."
Just more signposts along the road to ebooks replacing print.