Microsoft is to a invest a total of $300 million in Barnes & Noble's Nook business, earning a 17.6 percent stake in a subsidiary temporarily dubbed 'Newco'.
The "strategic partnership", which will give Microsoft a major stake in the eReader business, also guarantees the appearance of a Nook application for Windows 8 when the platform launches later this year.
Cranny division suffers
The formation of Newco and our relationship with Microsoft are important parts of our strategy to capitalise on the rapid growth of the Nook business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments," said Barnes & Noble CEO William Lynch.
"Microsoft's investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business."
Such has been the strong performance of Barnes & Noble's Nook division to date that Barnes & Noble has reportedly been reviewing whether to spin off the business into a separate company for months.
While this possibility is still being considered, the company claims there is still "no assurance" that the review will result in a complete separation.
Reading the market
For Microsoft's part, president Andy Lees said this is an important market for his company to have a hand in.
"The shift to digital is putting the worlds libraries and newsstands in the palm of every persons hand, and is the beginning of a journey that will impact how people read, interact with, and enjoy new forms of content," said Andy Lees.
"Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them. We're on the cusp of a revolution in reading."
The new subsidiary brings together Barnes & Noble's digital and college businesses, awith Microsoft's $300 million investment valuing the new company at $1.7 billion.
As part of the deal, Microsoft and Barnes & Noble have also settled a patent dispute which Microsoft brought against the company in 2011.
[source: Barnes & Noble]
Top Stories
News
Jun 7th, 2024
Week in Views - The hunt for the new Star Wars game, Xbox goes handheld, and cats versus monsters…
News
Jun 7th, 2024
Week in Views - The hunt for the new Star Wars game, Xbox goes handheld, and cats versus monsters…
News
Jun 7th, 2024
Metacore's Teppo Soininen: “Anybody who has put a game into soft launch knows there’s still plenty of space for f*ck ups.”
Events
Tribeca Games Festival 2024 | North America | Jun 5th |
Angles 24 Freeplay Conference | Australasia | Jun 6th |
Game Audio Symposium 2024 | Europe | Jun 7th |
Future Games Show 2024 | Jun 8th | |
Xbox Games Showcase / [Redacted] Direct | Jun 9th | |
PC Gaming Show 2024 | Jun 9th | |
Steam Next Fest: June 2024 Edition | Jun 10th | |
GamesForum Hamburg 2024 | Europe | Jun 11th |
Popular Stories
as
Feature
Jun 3rd, 2024
May 2024 mobile game charts: Brawl Stars peaks, Supercell rises, and Dungeon & Fighter Mobile’s big China launch
Feature
May 29th, 2024