Barnes & Noble announced Thursday that they are planning to keep their e-book business and Nook tablets as well as spin off their college books unit into its own publicly traded company. The company’s shares rose nearly 8 percent Thursday, its highest since 2009, in morning trading on the New York Stock Exchange.

Barnes & Noble claimed in June that they were going to spin off Nooks Digital Media, which Reuters reported was set to include its college books unit. Spokeswoman Mary Ellen Keating stated that the company was going to separate “Nook Digital business from the retail business,” but the board concluded that separating the college books unit would “allow each business to optimize the opportunities.”

Keating added that the Nook business will remain in the retail business. According to the Wall Street Journal, their plan was abandoned after a 55 percent drop in Nook sales during the latest holiday season made it a tough to sell to investors. Additionally, the company has been struggling to boost sales due to Amazon. Amazon’s Kindle has dominated the market share, costing the company millions of dollars over the past five years.

An analyst at Maxim Group, John Tinker, said that keeping the Nook within the retail business “is logical” because they are currently unsure of where the product stands. Plus, retaining the Nook will allow the company to keep its digital platform. Tinker also claimed that the plan creates a “pure play” for investors interested in diving into the college market.

Barnes & Noble’s college books unit alone rose nearly 2 percent to $751.3 million last quarter, and it accounted for roughly 45 percent of the company’s revenue. Their college bookstores operate on 714 campuses across the United States.

Barnes & Noble announced that shareholders are expected to receive shares of its new company, Barnes & Noble Education, in a tax-free transaction by the end of August. The new college bookstore company will be based in New Jersey and Max Roberts will be its chief executive.