Microsoft Invests $300M in Barnes & Noble Digital Reading Partnership
Microsoft has completed the formation of a partnership with the book retailer to advance digital reading and digital content in higher education markets.Microsoft has completed the creation of a partnership with bookseller Barnes & Noble to promote digital content at colleges and universities, including a $300 million investment by Microsoft in the B&N subsidiary Nook Media. Microsoft and Nook Media–a reference to the Nook e-book reader sold by Barnes & Noble–will focus on advancing “digital reading experiences to the hundreds of millions of customers they jointly serve,” the companies stated in a news release issued Oct. 4. Nook Media comprises the Digital and College businesses of Barnes & Noble. Microsoft made its $300 million investment in Nook Media at a valuation of $1.7 billion in exchange for about a 17.6 percent equity stake in the subsidiary; Barnes & Noble owns the remaining shares. The partnership will also involve delivering a Nook application for the coming Windows 8 operating system for tablets and desktop computers as well as for Windows Phone 8.
"Nook Media is a leader in developing the next generation of digital reading and we look forward to the company bringing one of the world's largest digital libraries to Windows 8 devices via their upcoming Windows 8 app," said Andy Lees, the president of Microsoft.