Microsoft finds a Nook with B&N


By Andrew Hudson Published: May 1, 2012 Updated: October 18, 2016

By Andrew Hudson Published: May 1, 2012 Updated: October 18, 2016

Microsoft has teamed with Barnes & Noble to expand the Nook ebook reader business. Investing $300 million, Microsoft gets a 17.6 percent equity stake in a new B&N subsidiary (currently unnamed). That values the new company — 82.4 percent owned by B&N — at $1.7 billion, more than B&N itself.

Barnes & Noble has been spending heavily to make Nook #2 in the market and the investment from, and deep pockets of, Microsoft are no doubt a welcome stamp of approval. Microsoft is positioning itself for a strong launch of Windows 8, having recently also teamed with Nokia on smartphones. The Microsoft Reader platform, launched in 2000, was last revised in 2007 and is being discontinued this year.

“The shift to is putting the world’s libraries and newsstands in the palm of every person’s hand, and is the beginning of a journey that will impact how people read, interact with, and enjoy new forms of content.”
Andy Lees, Microsoft president, April 30, 2012.

“The formation of Newco and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the NOOK business, and to solidify our position as a leader in the exploding market for content in the consumer and education segments.”
William Lynch, CEO of Barnes & Noble, April 30, 2012.

“This is a key way of getting more content on to the Microsoft platform — specifically e-books content to ensure that its Windows 8 tablets will be able to compete not only against the best-selling iPad but also the Kindle Fire from Amazon, along with the rest of the company’s e-readers.”
Ingrid Lunden, TechCrunch, April 30, 2012.

Market Share of eBook Tablets
Market
share
2012
DeviceOperating
system
60%Amazon KindleGoogle Android
25%B&N NookGoogle Android
Maybe in the future:
Microsoft Windows 8?
15%Apple iPadApple iOS
Source: Cnet

Source: Cnet, Microsoft.

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