Posted on 04/30/2012 10:19:20 AM PDT by SeekAndFind
Microsoft will invest $300 million in Barnes & Noble's Nook e-reader, gaining a foothold in the fast-growing e-books market as the bookseller gets more firepower to compete against Amazon.com's Kindle and Apple's (AAPL) iPad.
The move comes as Microsoft is looking to generate excitement around its tablet-friendly Windows 8 operating system, expected on the market around October. The deal announced on Monday includes Microsoft taking a stake in the bookseller's college bookstore division. It also means that the two companies have settled their patent dispute.
Shares of Barnes & Noble soared nearly 70 percent on Monday, while Microsoft shares were nearly flat. The agreement values the Nook and textbook businesses, which will form a new subsidiary, at $1.7 billion.
"This is not a financial investment. It's a strategic investment to strengthen Windows 8 as a platform for tablets and e-reading," said BGC Partners analyst Colin Gillis.
Barnes & Noble gets a much-needed capital injection and a way to enter the digital books market outside the United States.
Microsoft will receive a 17.6 percent stake in the new company, temporarily called Newco. It will be run by Barnes & Noble and will maintain a relationship with the U.S. bookstore chain's nearly 700 stores.
Barnes & Noble's Nook has found a strong following, allowing it to garner some 27 percent of the U.S. e-books market in the 2-1/2 years since the device was launched. But battling Amazon's market-leading Kindle has proved expensive.
"It gives them a much larger partner with deeper pockets, it gives them increased reach," said Morningstar analyst Peter Wahlstrom. "In the last two years they've had their backs against the wall."
(Excerpt) Read more at mercurynews.com ...
Hmm... looking to buy it out?
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Well, that’s unfortunate. Barnes & Noble has usually been well to the left of Amazon. When an important conservative book comes out, they generally hide it, whereas Amazon is pretty “fair and balanced.”
I have never had any trouble finding conservative books at B&N.
Micrsoft always seems to be the “me too!” company. They never seem to innovate much and always look like they’re playing catch-up to markets others have created and never really perform very well.
Microsoft “Bob”
Microsoft “Playsforsure”
Microsoft “Tablet PC”
Microsoft “Ultimate TV”
Microsoft “Zune”
They have gobs of $ and can easily wait out the downturn.
They don't need to innovate other than their OS. I see Apple as the tortoise, Microsoft as the hare.
I love my Nook.
I bought it and then ripped out all the junk from B&N. A quick install of CM7 and I had a cheap tablet.
I have a Nook Tablet..the Nook Tablet runs on a modified Barnes and Noble ANDRIOD 2.3 Operating System. Just wondering..with Microsoft’s involvement in Barnes and Nobles business..will the Nook Tablet’s operating system be changed to the new Windows 8 OS?
The Nook Tablet is pretty great. I’ve no real problems with it..I honestly don’t see a need for an operating system change at this point, anyway.. just my two cents.
Where would Microsoft be without Apple to rip off? They'd still be selling DOS! (That's where Microsoft got Windows in the first place.)
Like it or not, Apple is worth more than Microsoft.
Apple has had their share of bloopers, but they are more innovative than Microsoft at present, and its reflected in their stock prices.
Yes, at present. But, as I said MSFT is the hare (oops I mean tortoise). Slow and steady wins the race.
BTW...Microsoft has far more shares outstanding. Thus, cost is less.
The nook is a great product already. The are not behind in the market.
The nook is a great product already. The are not behind in the market.
apple is the fast hare w/ wiz bang.
MS is slow as mollasis.
then again remember how “experts” made fun of xbox?
They have a better movement interface than the wii and play station is art not product.
Sure they'll still be around and doing OK, but ultra liberal-led companies tend to thrive more under liberal leadership.
Gates is liberal but trashes Obama's "1%" soundbyte. Ballmer gives 50-50 in his political donations. Microsoft has been biding its time and will outlast Apple IMO.
But all remains to be seen.
Is that something like, I have as many pennies as you do hundred dollar bills?
those companies CLAIM to be liberal but the reality is they are more ruthless and conservative than any conservative.
The liberal leftist donations are just them keeping the serfs in serfdom. keeping the thrals on the itunes reservation.
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