Microsoft & Nook

Microsoft has decided to back the Nook tablet and has invested $300 million in a new Barnes & Noble subsidiary called Newco.  As part of this deal Nook digital bookstore will be bundled with Widows 8 when its newest version comes out later this year.  With this announcement Microsoft will maintain 82.4% ownership in Newco.  After this news was announced, Barnes & Noble stock rose 83%.  

This influx of cash will allow Barnes & Noble to hire new engineers, software developers, and hardware designers as well as allow them to compete on a marketing front with Amazon and Apple. 

Barnes & Noble also announced for the first time, potential international expansion.  This is because Microsoft screen are all over the world and with this new partnership Barnes & Noble can take advantage of that.  Customers are also more likely to purchase the Nook because they can have more confidence in the continued success of the brand with Microsoft behind it. 

I am really happy about this deal because I would like one traditional bookstore chain to stay around.  I also think that more options for consumers is better especially in light of the collusion between Apple and the publishing houses.  I think it is beneficial for both companies as Microsoft can reach the tablet market and Barnes & Noble can gain stability.     

http://news.cnet.com/8301-1023_3-57423980-93/microsoft-deal-allows-b-n-to-go-toe-to-toe-with-amazon-and-apple/?tag=mncol;topStories