Mariah Carey increased security in feud with fellow “Idol” judge






NEW YORK (Reuters) – Pop diva Mariah Carey said she hired increased security following what she described as threats reportedly made against her by fellow ‘American Idol‘ judge Nicki Minaj, according to an interview on ABC News.


Carey, 42, one of three new judges to join the “American Idol” panel for the hit talent show’s new season on January 16, told Barbara Walters in an interview airing on Monday, “it felt like an unsafe work environment.”






“Anytime anybody’s reeling threats at somebody, you know, it’s not appropriate,” Carey said.


“I’m a professional. I’m not used to that type of environment,” she said, adding that she hired extra security.


The diva was alluding to widely reported tension between her and Minaj, who were seen arguing with one another in a video from the show’s audition phase.


Walters has reported that, according to Carey, others on the “Idol” set heard Minaj go further and say, off-camera, “If I had a gun, I would shoot that bitch.”


Minaj, a Trinidadian-born singer and songwriter, previously denied making any remarks about firearms, but Carey told Walters that beefing up her security “was the appropriate thing to do.”


“Sitting there on the road with two babies, I’m not going to take any chances,” she said, referring to her 20-month old twins with husband Nick Cannon.


But in a sign of media savvy, she noted that “for all the drama, I hope it helps the show.”


Walters also asked Carey about reports she is being paid $ 18 million for each “Idol” season.


“I think we’re in the ballpark, (but) I can’t even talk about those things,” the singer replied.


(Reporting by Chris Michaud; Editing by Piya Sinha-Roy and Paul Simao)


Music News Headlines – Yahoo! News





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The New Old Age Blog: Who Should Receive Organ Transplants?

Joe Gammalo had been contending with pulmonary fibrosis, a scarring of the lungs, for more than a decade when he came to the Cleveland Clinic in 2008 seeking a lung transplant.

“It had gotten to the point where I was on oxygen all the time and in a wheelchair,” he told me in an interview. “I didn’t expect to live.”

Lung transplants are a dicey proposition, involving a huge surgical procedure, arduous follow-up, the lifelong use of potent immunosuppressive drugs and high rates of serious side effects. “It’s not like taking out an appendix,” said Dr. Marie Budev, the medical director of the clinic’s lung transplant program.

Only 50 to 57 percent of all recipients live for five years, she noted, and they will still die of their disease. But there’s no other treatment for pulmonary fibrosis.

Some medical centers would have turned Mr. Gammalo away. Because survival rates are even lower for older patients, guidelines from the International Society for Heart and Lung Transplantation caution against lung transplants for those over 65, though they set no age limit.

But “we are known as an aggressive, high-risk center,” said Dr. Budev. So Mr. Gammalo was 66 when he received a lung; his newly found buddy, Clyde Conn, who received the other lung from the same donor, was 69.

You can’t mistake the trend: A graying population and revised policies determining who gets priority for donated organs, have led to a rising proportion of older adults receiving transplants.

My colleague Judith Graham has reported on the increase in heart transplants, but the pattern extends to other organs, too.

The number of kidney transplants performed annually on adults over 65 tripled between 1998 and last year, according to data from the Scientific Registry of Transplant Recipients. In 2001, 7.4 percent of liver transplant recipients were over 65; last year, that rose to 13 percent.

The rise in elderly lung transplant candidates is particularly dramatic because, since 2005, a “lung allocation score” puts those at the highest mortality risk, rather than those who’ve waited longest, at the top of the list.

In 2001, about 3 percent of those on the wait list and of those transplanted were over 65; last year, older patients represented almost 18 percent of wait-listed candidates and more than a quarter of transplant recipients. (Medicare pays for the surgery, though patients face co-pays and considerable out-of-pocket costs, including for drugs and travel.)

The debate has grown, too: When the number of adults awaiting transplants keeps growing, but organ donations stay flat, is it desirable or even ethical that an increasing proportion of recipients are elderly?

Dr. Budev, who estimated that a third of her program’s patients are over 65, votes yes. As long as a program selects candidates carefully, “how can you deny them a therapy?” she asked. So the Cleveland Clinic has no age limit. “We feel that everyone should have a chance.”

At the University of Michigan, by contrast, the age limit remains 65, though Dr. Kevin Chan, the transplant program’s medical director, acknowledged that some fit older patients get transplanted.

“You can talk about this all day — it’s a tough one,” Dr. Chan said. Younger recipients have greater physiologic reserve to aid in the arduous recovery; older ones face higher risk of subsequent kidney failure, stroke, diabetes and other diseases, and, of course, their lifespans are shorter to begin with.

Donated lungs, fragile and prone to injury, are a particularly scarce commodity. Last year, surgeons performed 16,055 kidney transplants, 5,805 liver transplants and 1,949 heart transplants. Only1,830 patients received lung transplants.

“What if there’s a 35-year-old on a ventilator who needs the lung just as much?” Dr. Chan said. “Why should a 72-year-old possibly take away a lung from a 35-year-old?” Yet, he acknowledged, “it’s easy to look at the statistics and say, ‘Give the lungs to younger patients.’ At the bedside, when you meet this patient and family, it’s a lot different.”

These questions about who deserves scarce resources — those most likely to die without them? or those most likely to live longer with them? — will persist as the population ages. They’re also likely to arise when the International Society for Heart and Lung Transplantation begins working towards revised guidelines this spring. (I’d also like to hear your take, below.)

Lots of 65- and 75-year-olds are very healthy. Yet transplants themselves can cause harm and there’s no backup, like dialysis. Without the transplant, they die. But when the transplant goes wrong, they also die.

More than four years post-transplant, the Cleveland Clinic’s “lung brothers” are success stories. Mr. Conn, who lives near Dayton, Ohio, can’t walk very far or lift more than 10 pounds, but he works part time as a real-estate appraiser and enjoys cruises with his wife.

Mr. Gammalo, a onetime musician, has developed diabetes, like nearly half of all lung recipients. But he went onstage a few weeks back to sing “Don’t Be Cruel” with his son’s rock band, “a highlight of both our lives,” he said.

Yet when I asked Mr. Conn, now 73, how he felt about having priority over a younger but healthier person, he paused. “It’s a good question,” he said, to which he had no answer.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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Sears CEO D'Ambrosio to step down









Sears Holdings Corp. said Monday night that Chief Executive Officer Louis D'Ambrosio will step down Feb. 2, due to family health matters, and Chairman Edward Lampert will add the role of CEO.

The surprise move fuels uncertainty at the Hoffman Estates-based company, which has struggled for years to re-establish itself as a department store in an ultracompetitive retailing industry dominated by low-price giant Wal-Mart and big box and specialty stores.

Shares of Sears Holdings were up 2.3 percent in premarket trading on the news.

The decision by Lampert, a hedge fund operator who is the company's biggest shareholder, to take over day-to-day control represents a reversal from his naming of D'Ambrosio as chief executive nearly two years ago after operating with an interim CEO.

"In light of Lou's decision to step down, the board feels it is important that there is continuity of leadership during this important period of transformation and improvement at Sears Holdings," Lampert said in a statement. "I have agreed to assume these additional responsibilities in order to continue the company's recovery and sustain the momentum we are experiencing, as well as further the development of the management team under the distributed leadership model, which provides our business unit leaders with greater control, authority and autonomy."

Sears Holdings, which operates Sears and Kmart, also updated its fourth-quarter earnings outlook Monday night. The company said it expects to report a net loss $280 million to $360 million, or $2.64 to $3.40 per diluted share, for the quarter ending Feb. 2. The loss includes a charge of about $450 million because of pension settlements and an additional $42 million in pension expenses.

Excluding pension expenses, Sears said it expects to earn $132 million to $212 million, or $1.25 to $2 per share.

Analysts polled by Bloomberg had been expecting adjusted net income of about $137 million.

For the fiscal year, Sears said it expects to lose $721 million to $801 million, or $6.80 to $7.56 per diluted share, which includes pension-related costs and other adjustments reported late last year. Excluding those items, the company said it expects to lose $123 million to $203 million, or $1.16 to $1.92 per share.

D'Ambrosio became CEO after working for the company as a consultant. The 16-year veteran of IBM Corp. had been CEO of a telecommunications company before joining Sears.

"I have worked very closely with Eddie over the past two years. I can say this: there is simply no one in the world that cares more about Sears Holdings and has thought more deeply about our company than Eddie," D'Ambrosio wrote to employees.

Lampert gained control of Sears in 2005 after engineering the merger between Kmart and Sears Roebuck & Co. For years, speculation about Lampert's intentions for the company focused on the value of its real estate, but under D'Ambrosio, Sears appeared to pay more attention to retail aspirations.

The company reported improved performance — it beat Wall Street expectations — in the previous quarter, but Sears stock has lost more than 35 percent of its value since November, closing Monday at $42.92, up 1.7 percent.

 Crshropshire@tribune.com | Twitter: @corilyns 

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House drops assault weapon ban plan, may tackle pension reform

The clock is ticking for Illinois lawmakers to come to an agreement on the pension crisis. CBS 2's Courtney Gousman reports.









SPRINGFIELD — With time running short in the lame-duck session, state lawmakers on Sunday dropped hot-button issues dealing with guns and marijuana but kept alive hopes of reforming pensions and giving driver's licenses to illegal immigrants.

The slimmed-down agenda unfolded rapidly as the House, returning to the Capitol for the first time in a month, pulled an assault weapons ban from consideration and the sponsor of legislation to allow Illinoisans to use marijuana for medical purposes said the chances of quick passage is unlikely.


The spotlight on whether Democratic Gov. Pat Quinn and legislators can come together on financial changes to the state's $96.8 billion government worker pension debt intensified Sunday. House Republican leader Tom Cross of Oswego signed onto a plan offered by two House Democrats and urged GOP members to support it.








Still, Cross acknowledged that Senate President John Cullerton believes a different measure is the only one that meets a state constitutional prohibition against impairing or diminishing public pensions. Cullerton's version, previously passed by the Senate, offers state employees a trade of access to state health care in return for a reduction in retirement benefits.


"Nobody has any idea what the court's going to do," Cross said. "We all have lawyers. There are a lot of lawyers in Chicago. People have opined on what works and doesn't work. The reality is, nobody knows."


Quinn spokeswoman Brooke Anderson said the administration, which wants the package passed before a new Legislature is seated Wednesday, is "encouraged with the momentum."


The pension proposal's fate is uncertain should it pass the House. The Senate went home Thursday but Cullerton left open the possibility of coming back. Cullerton spokeswoman Rikeesha Phelon said senators would return to Springfield Tuesday "to review and hear" a significant pension reform bill if one is passed by the House.


"I can't make any predictions beyond that," she said.


When the governor and legislative leaders met Saturday, Cullerton said at various points he would lobby against the House plan, Cross said. But Cross also said Cullerton indicated that he would allow for a Senate vote if the pension measure passed the House.


Still, if Cullerton balks at the House pension plan, Springfield could devolve into an all-too-familiar political game: The House passes one version of legislation, the Senate passes another, lawmakers pat themselves on the back and then blame the other chamber for failing to achieve needed reform.


Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years, although the length of time was still under discussion Sunday night. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure among public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.


Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.


The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems, which are considered the worst-funded in the nation.


Meanwhile, a proposal to allow undocumented immigrants to qualify for Illinois driver's licenses could get its first House test today. Sponsoring Rep. Eddie Acevedo, D-Chicago, said he would call the Senate-passed bill on the House floor if it advances from committee.


Also Sunday, a House panel defeated a bill to require companies to file public disclosure forms when they pay no state income taxes.


rlong@tribune.com


rap30@aol.com







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Alcatel One Touch readies U.S. invasion with world’s thinnest smartphone and a colorful 5-inch phablet






TCL Communication’s (2618) Alcatel One Touch brand is ostensibly unknown in the United States, but the company is looking to make a name for itself at this year’s Consumer Electronics Show. Alcatel One Touch has a number of new devices debuting at CES 2013 and to start things off, the China-based firm has unveiled a trio of intriguing new Android phones.


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]






While the show doesn’t officially begin until Tuesday, Alcatel One Touch got an early start on Monday — likely in order to ensure that it can lay claim to “the world’s thinnest smartphone” for at least a few hours.


[More from BGR: Next-generation LTE chips to reduce power consumption by 50%]


The first of three smartphones debuting at CES 2013 is the One Touch Idol Ultra, a sleek Android-powered handset that is just 6.45 millimeters thick. To put that dimension in perspective, the phone is 15% thinner than Apple’s (AAPL) iPhone 5.


Other notable specs include a 4.7-inch HD AMOLED display, a 1.2GHz dual-core processor, an 8-megapixel camera, 1GB of RAM and Android 4.1 Jelly Bean.


Next up is the One Touch Idol, an entry-level version of the Idol Ultra. Measuring a slightly thicker 8.15 millimeters, the One Touch Idol includes a 4.7-inch qHD IPS display, a 1.2GHz dual-core processor, an 8-megapixel camera, 512MB of RAM and the same Jelly Bean OS as the Ultra model.


Finally, Alcatel One Touch has unveiled its first entry into the “phablet” market with the One Touch Scribe HD. This stylus-ready device features a 5-inch HD IPS display, the 1.2GHz quad-core MediaTek MT6589 chipset, an 8-megapixel camera, 1GB of RAM, a microSD slot and Android 4.1. The One Touch Scribe HD also comes in a variety of colors including black, white, red and yellow.


Each of the three smartphones Alcatel One Touch debuted on Monday will launch in China later this month. The One Touch Scribe HD will then be released in the U.S. some time in the second quarter for a surprisingly affordable $ 397 before taxes and subsidies, and both the One Touch Idol and One Touch Idol Ultra will launch at a later point in time. The latter will cost $ 444 before taxes and subsidies, while pricing for the One Touch Idol has not yet been announced.


No carrier partners have been revealed at this point in the U.S. or in China.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News




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”Texas Chainsaw” movie kills rivals at North America box office






(Reuters) – The return of the bloody “Texas Chainsawfranchise sliced up movie box office rivals with a surprise win over the weekend, grabbing an estimated $ 23 million in U.S. and Canadian ticket sales.


The new “Texas Chainsaw 3D” pulled past Quentin Tarantino Western “Django Unchained,” the second place film from Friday through Sunday with $ 20 million. No. 3 movie “The Hobbit: An Unexpected Journey” grabbed $ 17.5 million.






Going into the weekend, box office forecasters did not think the revival of the 40-year-old “Texas Chainsaw” franchise had enough buzz to top the holiday releases that are adding to their tallies during the month of January, a typically slow time for moviegoing.


Marketing efforts for “Texas Chainsaw” paid off for distributor Lions Gate Entertainment, the studio behind the horror franchise.


Lions Gate ran a social media campaign aimed at its core horror fan base – mostly young men and women – and ran promotions during AMC Networks’ TV zombie hit “The Walking Dead.” The studio aimed for a broader audience with promotions during college football bowl games and other sports programs after Christmas.


“The numbers were a little bit more than expected,” said Richie Fay, the president of domestic distribution for Lions Gate Entertainment.


“It is great to be No. 1. I think we held our own,” he added.


Lions Gate spent about $ 20 million to promote the movie, which was produced by Millennium Films.


The movie revives a franchise that started four decades ago with the 1974 film about a serial killer named Leatherface. Since then, the seven “Texas Chainsaw” movies have pulled in $ 175 million at North American (U.S. and Canadian) theaters, according to website Box Office Mojo. The films have generated $ 416 million domestically.


The new movie follows a woman who inherits a family home in the town of Newt, Texas, showing all of the blood and gore in 3D. The story picked up where the original left off and included cameos from original cast members.


Texas Chainsaw” was the only new nationwide release in North America (United States and Canada) over the weekend. “The Hobbit,” the first of three movies based on the fantasy novel by J.R.R. Tolkien, brought its total domestic sales to $ 263.8 million since its December 14 debut. “Django Unchained,” released on Christmas Day, reached $ 106.3 million.


In fourth place for the weekend, musical “Les Miserables” earned $ 16.1 million, bringing its domestic sales to $ 103.6 million since its Christmas Day release. The No. 5 slot belonged to family comedy “Parental Guidance,” which grossed $ 10.1 million.


The Hobbit” was distributed by Time Warner Inc’s Warner Bros. studio. The Weinstein Co. released “Django Unchained.” Universal Studios, a unit of Comcast Corp distributed “Les Miserables.” “Parental Guidance” was released by 20th Century Fox, a unit of News Corp.


(Reporting By Lisa Richwine; Editing by Cynthia Osterman)


Movies News Headlines – Yahoo! News





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Tehran Is Choked by Annual Buildup of Air Pollution





TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.




For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.


On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.


Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.


“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.


The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.


Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.


But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.


Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.


A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.


Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.


The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.


The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.


On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.


In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.


Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.


Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.


For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.


“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”


Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.


“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”


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BofA to pay $3.6B to Fannie Mae













Bank of America


Tourists walk past a Bank of America banking center in Times Square in New York.
(Brendan McDermid/Reuters / September 20, 2012)



























































Bank of America Corp. said it will pay $3.6 billion to Fannie Mae to settle claims related to residential mortgage loans for the nine years to the end of 2008.

The bank also entered into agreements with Nationstar Mortgage Holdings LLC and Walter Investment Management Corp. to sell about $306 billion of residential mortgage servicing rights.

The rights allow banks to earn fees from mortgage investors in exchange for collecting home loan payments from borrowers.

As part of the settlement with Fannie Mae, the bank will repurchase $6.75 billion of residential mortgage loans sold to the government agency.

BofA said the settlement will reduce its fourth-quarter pretax income by about $2.7 billion.

Reuters reported on Friday that the bank was in talks to sell collection rights on $300 billion of mortgages to lessen its exposure to huge losses from its acquisition of Countrywide Financial Corp in 2008.

"Together, these agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time," Chief Executive Brian Moynihan said in a statement.
 


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Deal reached to end NHL lockout, season could begin Jan. 19




















The NHL and the players association have reached a tentative agreement to end the lockout.




















































The NHL and players association reached an agreement on the framework of a new collective bargaining agreement early Sunday morning, ending the lockout that began Sept. 15.


"I'm really happy this is over," Chicago Blackhawks captain Jonathan Toews said via text. "A lot of credit goes to the players who were in the bargaining sessions and worked very hard to get a deal done."


After a marathon session in New York, league commissioner Gary Bettman and NHLPA Executive Director Donald Fehr announced the deal around 4 a.m. Central.








"We have to dot a lof of the I's and cross a lot of T's," Bettman told reporters in New York. "There is still a lot of work to be done, but the basic framework has been agreed upon."


There will be a ratification process and the league Board of Governors and player will have to officially approve the new CBA, which reportedly will run 10 years.


"Any process like this in the system we have is difficult," Fehr told reporters. "We have the framework of a deal. We have to do the legal work ... and we'll get back to what we used to call business as usual just as fast as we can."


The final push during talks which lasted 16 hours was led by a federal mediator that helped the sides bridge the final gap on several key issues, including contract terms, salary cap and pensions. The union will hold a conference call with players Sunday afternoon to update them on the terms of the deal.


Details on when the season will begin and how many games each team will play haven't been announced, but it is possible a 48-50-game schedule could begin Jan. 19 or even a few days sooner.


ckuc@tribune.com


Twitter @ChrisKuc






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Barnes & Noble sells fewer Nooks, retail revenue falls






(Reuters) – Barnes & Noble Inc’s Nook unit reported weak holiday season numbers on Thursday as it sold fewer e-readers and tablets at its own stores, and its e-books sales growth slowed, raising questions about the future of its digital business.


The Nook, launched in 2009 to compete with Amazon.com Inc‘s market-leading Kindle, has been the cornerstone of Barnes & Noble‘s strategy to counter the shift by many book readers to digital books. Early growth attracted a big investment last year from Microsoft Corp.






And last week, British education and media publisher Pearson Plc said it would take a 5 percent stake in Barnes & Noble‘s Nook Media unit, which also includes its college bookstore chain, giving it a $ 1.8 billion value, about double the company’s value as a whole.


But questions swirled about whether it is worth that much, after the retailer said that the Nook segment’s revenue fell 12.6 percent from a year earlier during the nine weeks ended December 29, hurt by lower unit sales and prices.


Sales of digital content like e-books and magazines rose 13.1 percent during the holidays, a much slower pace than the 38 percent gain last quarter and 113 percent in the 2011 holiday season, suggesting Barnes & Noble is having trouble holding on to its 25-30 percent share of the U.S. e-books market.


“We are way beyond the point where you should see content sales accelerate,” Morningstar analyst Peter Wahlstrom told Reuters. “That hasn’t materialized and that’s concerning.”


The numbers were all the more disappointing given that in late November, Barnes & Noble had told investors Nook device sales doubled over the Black Friday weekend, which follows Thanksgiving and kicks off the holiday season in earnest.


That suggests the rest of season was a debacle, analysts said, and Chief Executive William Lynch said in a statement that Barnes & Noble is “examining the root cause” of the shortfall and will adjust its strategy.


“The investment question for Barnes & Noble in 2013 is the Nook‘s staying power as a legitimate tablet device,” Credit Suisse analyst Gary Balter wrote in the note, predicting the retailer will face stiffer competition this year from the likes of Apple Inc and Google Inc, since tablets now have improved functions that make them more appealing to book readers.


The drop in Nook sales came despite the launch of two well-reviewed high-definition Nook tablets in October and promotions at large chains like Wal-Mart Stores Inc and Target Corp, both of which stopped selling Kindles last year.


Despite the holiday results, Barnes & Noble still expects Nook Media sales of $ 3 billion this fiscal year, keeping a forecast it gave in October.


That steady forecast helped lift shares 2.6 percent to $ 14.88 in morning trading.


The company will report full quarterly results in late February.


The results follow a warning from Barnes & Noble in a filing last week that holiday sales would come in below its expectations. The warning erased most of the gains in its share price that followed the news of Pearson’s investment.


FEWER VISITORS IN STORES


Compounding Barnes & Noble‘s troubles, fewer shoppers came into its bookstores during the Christmas period.


Barnes & Noble, which had enjoyed a sales bump after onetime rival Borders Group liquidated in 2011, reported a 10.9 percent decrease in sales at its bookstores and on its website over the holiday period.


Sales at stores open at least 15 months fell 3.1 percent, excluding Nook products, despite the benefit of some store closings — Barnes & Noble operates 689 bookstores, 14 fewer than a year ago.


“The Borders tailwind is over,” Morningstar’s Wahlstrom said.


(Reporting by Phil Wahba in New York; editing by John Wallace and Nick Zieminski)


Gadgets News Headlines – Yahoo! News





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