Microsoft And Barnes & Noble Nook Deal/Partnership

Microsoft has been making the news quite frequently, for a strategic partnership in a new Barnes & Noble subsidiary, which will reportedly "accelerate the transition to e-reading, which is revolutionizing the way people consume, create, share and enjoy digital content." It's interesting to think about this given that Microsoft itself killed a 'Courier' project a few years back that had the chance to demolish Amazon Kindle from market (let Nook be king), but now, Microsoft is left to buddy up with companies still in that game of e-reader technology business.

The new subsidiary will initially be called Newco, and it's expected to bring together the digital and College businesses of Barnes & Noble. Microsoft will make a $300 million investment in Newco at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake. Barnes & Noble will own approximately 82.4% of the new subsidiary, which will have an ongoing relationship with the company's retail stores. B&N will obviously change the name at some point, but it makes us wonder why this news was rushed out without a name.


Microsoft is also promising a Nook application for Windows 8, as well as Nook Study software and moving forward, Barnes & Noble and Newco will have a royalty-bearing license under Microsoft's patents for its Nook eReader and Tablet products.

Yet comments from B&N CEO William Lynch surprisingly suggest the company will be sticking with the open-source technology powered by Google Android that is used on the Nook, rather than running a version of Microsoft Windows.

In an interview with Fortune magazine, Lynch said that the Nook would remain an open-source device, despite Microsoft bringing B&N on board as an application for Windows 8 smartphones and computers. “Currently, we’ve not communicated anything related to the road map about any hardware collaboration on Nook. Nook, as you know, uses open sourcing. Microsoft is obviously very entrenched in Windows,” he said. “On the reading software side, in reading technologies, they’re making interesting integrations into Windows, potentially Office. That kind of work has already started. Definitively yes.”

B&N sold more than 800,000 Nook Color devices in the fourth quarter of 2011, according to a report from research firm IDC

I think still there is a lot left in forecoming discussion to finalize this deal. Rest of 2012 months will hold the key for Microsoft and B&N Deal.
Microsoft And Barnes & Noble Nook Deal/Partnership Microsoft And Barnes & Noble Nook Deal/Partnership Reviewed by Admin on 5:24 PM Rating: 5

1 comment:

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