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Microsoft gears up for fight with Apple, Amazon by investing in Barnes & Noble's Nook
San Jose Mercury News ^ | 04/30/2012 | Phil Wahba

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 ...


TOPICS: Business/Economy; Computers/Internet; Society
KEYWORDS: barnesandnoble; microsoft

1 posted on 04/30/2012 10:19:29 AM PDT by SeekAndFind
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To: SeekAndFind

Hmm... looking to buy it out?


2 posted on 04/30/2012 10:24:16 AM PDT by wastedyears (There can be only one.)
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To: SeekAndFind; ~Kim4VRWC's~; 1234; Abundy; Action-America; acoulterfan; AFreeBird; Airwinger; ...
Microsoft gears up for Fight with Apple and Amazon buy investing in the Barnes and Noble Nook—PING!


Say What???? Ping!

Please, No Flame Wars!
Discuss technical issues, software, and hardware.
Don't attack people!
Don't respond to the Anti-Apple Thread Trolls!
PLEASE IGNORE THEM!!!

If you want on or off the Mac Ping List, Freepmail me.

3 posted on 04/30/2012 10:24:55 AM PDT by Swordmaker (This tag line is a Microsoft insult free zone... but if the insults to Mac users continue...)
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To: SeekAndFind

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.”


4 posted on 04/30/2012 10:25:44 AM PDT by Cicero (Marcus Tullius)
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To: Cicero

I have never had any trouble finding conservative books at B&N.


5 posted on 04/30/2012 10:32:00 AM PDT by Perdogg
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To: SeekAndFind

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”


6 posted on 04/30/2012 10:36:29 AM PDT by Obadiah
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To: Obadiah
Microsoft has become a steady-as-she-goes company.

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.

7 posted on 04/30/2012 11:03:16 AM PDT by what's up
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To: SeekAndFind

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.


8 posted on 04/30/2012 11:40:10 AM PDT by Azeem (There are four boxes to be used in the defense of liberty: soap, ballot, jury and ammo.)
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To: SeekAndFind

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.


9 posted on 04/30/2012 11:42:41 AM PDT by Biblical Calvinist (Soli Deo Gloria !)
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To: what's up
They don't need to innovate other than their OS. I see Apple as the tortoise, Microsoft as the hare.

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.

10 posted on 04/30/2012 11:49:23 AM PDT by MrsEmmaPeel (a government big enough to give you everything you want, is big enough to take everything you have)
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To: MrsEmmaPeel
they are more innovative than Microsoft at present

Yes, at present. But, as I said MSFT is the hare (oops I mean tortoise). Slow and steady wins the race.

11 posted on 04/30/2012 11:58:46 AM PDT by what's up
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To: MrsEmmaPeel

BTW...Microsoft has far more shares outstanding. Thus, cost is less.


12 posted on 04/30/2012 12:01:58 PM PDT by what's up
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To: Obadiah

The nook is a great product already. The are not behind in the market.


13 posted on 04/30/2012 12:06:38 PM PDT by bmwcyle (I am ready to serve Jesus on Earth because the GOP failed again)
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To: Obadiah

The nook is a great product already. The are not behind in the market.


14 posted on 04/30/2012 12:06:53 PM PDT by bmwcyle (I am ready to serve Jesus on Earth because the GOP failed again)
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To: what's up

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.


15 posted on 04/30/2012 12:18:07 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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Click the link. The Republic you save may be your own.

16 posted on 04/30/2012 12:24:04 PM PDT by RedMDer (https://support.woundedwarriorproject.org/default.aspx?tsid=93)
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To: longtermmemmory
I tend to think that wiz bang companies won't be so wiz bang if a Repub gets in.

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.

17 posted on 04/30/2012 12:30:09 PM PDT by what's up
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To: what's up
BTW...Microsoft has far more shares outstanding. Thus, cost is less.

Is that something like, I have as many pennies as you do hundred dollar bills?

18 posted on 04/30/2012 1:18:12 PM PDT by itsahoot (I will not vote for Romney period, and by election day you won't like him either.)
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To: what's up

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.


19 posted on 04/30/2012 2:16:53 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: wastedyears
I own a Nook.

IMO, the B&N Nook is a piece of crap. The operating systems are flaky, inconvenient and unpredictable.

Every now and then mine resets itself, wiping out everything in the Nook memory. I continually am required to re-register the device before I can communicate a transaction.
20 posted on 04/30/2012 3:48:33 PM PDT by Banjoguy (The U.S. population are now the slaves of all taxing bodies in the country.)
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To: wastedyears
I own a Nook.

IMO, the B&N Nook is a piece of crap. The operating systems are flaky, inconvenient and unpredictable.

Every now and then mine resets itself, wiping out everything in the Nook memory. I continually am required to re-register the device before I can communicate a transaction.
21 posted on 04/30/2012 3:49:06 PM PDT by Banjoguy (The U.S. population are now the slaves of all taxing bodies in the country.)
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To: what's up
BTW...Microsoft has far more shares outstanding. Thus, cost is less.

MSFT Market cap: $268.95B. AAPL: $546.06B. Yes, Microsoft has more outstanding shares, but the total value of Apple's shares is more than double that of Microsoft.

22 posted on 04/30/2012 7:52:23 PM PDT by ReignOfError
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To: SeekAndFind

Five years ago the Nook would’ve been pretty cool. But anymore... The Kindle is just eating their lunch.


23 posted on 04/30/2012 8:22:23 PM PDT by Ramius (Personally, I give us one chance in three. More tea anyone?)
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To: Ramius

I agree. My Father has a Nook. Not bad, but my K3 and my bride’s Fire are much better.


24 posted on 05/02/2012 12:55:03 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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