Microsoft Invests $300 Million in Nook to Take on Amazon and Apple in E-Book Market

Microsoft and Barnes & Noble today announced the formation of a new Barnes & Noble subsidiary focused around the existing Nook digital e-reader and e-book business, as well as Barnes & Noble's college business. Microsoft will make a $300 million investment in the subsidiary, which is preliminarily being called Newco until an official name is chosen, and receive 17.6% ownership of the business.

One of the first benefits for customers will be a NOOK application for Windows 8, which will extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers in the U.S. and internationally.

The inclusion of Barnes & Noble’s College business is an important component of Newco’s strategic vision. Through the newly formed Newco, Barnes & Noble’s industry leading NOOK Study software will provide students and educators the preeminent technology platform for the distribution and management of digital education materials in the market.

As part of the deal, Microsoft and Barnes & Noble have also settled their patent dispute, which saw Microsoft suing for infringement by the Nook reader in a move Barnes & Noble had positioned as an attack on all Android-based systems. The new deal will see Barnes & Noble and Newco holding a royalty-bearing license on the Microsoft patents in question.

The Microsoft/Barnes & Noble venture seeks to increase competition in the e-book market, taking on both Amazon's dominant position and Apple's upstart status that has seen the iPad become a popular e-reading option for consumers but much lower adoption of iBookstore content. Barnes & Noble has had some success with Nook, but its momentum has slowed recently and recent antitrust suits against Apple and book publishers breaking down the new agency model for e-book distribution have raised concerns that the industry will quickly return to a near-monopoly for Amazon.

Top Rated Comments

(View all)
Avatar
108 months ago
Always two steps behind.

Are they going to rename it the "Zook"?
Score: 29 Votes (Like | Disagree)
Avatar
108 months ago

"let's use our money to buy into the market that apple is getting into instead of being innovative and building it from the ground up!". This is why I hate Microsoft. Lol


So...

NeXT -> Mac OS X, iOS
Astarte-DVD -> iDVD
SoundJam -> iTunes
NothingReal -> Shake, Final Cut
P.A. Semi -> A4, A5, A5X SoCs
Siri -> Siri

The list is of course longer : List of mergers and acquisitions by Apple (http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple)

Even Apple "doesn't build it from the ground up!", do you hate them ?
Score: 26 Votes (Like | Disagree)
Avatar
108 months ago

Instead of innovating, just throw your money at somebody else's product. That's what Microsoft is good at.

Apple innovates, the others copy.

I would not exactly say Apple (or anyone really) has been "innovative" when it comes to eBooks.

Nor is simply creating a new store of their own "innovative".
Score: 26 Votes (Like | Disagree)
Avatar
108 months ago
Increased competition is a good thing. A two horse race is good for nobody. (See: American Politics)

I think 3 roughly equal competitors is the best combination to increase competiton while still able to have the companies maximize profits. That's why I would like to see Windows Phone do well. I'm sick of the iOS vs Android and WP7 is actually a pretty good OS which ISN'T just a blatant rip off of iOS....
Score: 18 Votes (Like | Disagree)
Avatar
108 months ago
Hope Apple is not as smug as many here are. Pride goeth before the fall as they say...

MS has $$$$ and can make some noise in this market if aligned with B&n. Good competition to keep Apple, Amazon and others on their toes.
Score: 17 Votes (Like | Disagree)
Avatar
108 months ago
I love how people still compare a tablet to an e-reader.

Misinformed journalism at its best.
Score: 16 Votes (Like | Disagree)

Top Stories

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...

Google Maps Debuts New Apple Watch App and CarPlay Features

Monday August 10, 2020 9:16 am PDT by
Google today announced the launch of several features for Google Maps on Apple products, including new CarPlay functionality and a new Google Maps app that works on Apple Watch. The new Google Maps app for Apple Watch works similarly to the iOS app, allowing Apple Watch owners to get directions for a car, bike, public transit, or on foot. The app supports estimated arrival times and...

Foxconn Reportedly Begins Seasonal Hiring Spree for iPhone 12 Production

Monday August 10, 2020 7:03 am PDT by
Apple's largest manufacturing partner Foxconn has begun its seasonal hiring spree to assist with iPhone 12 production, offering employees who recruit qualified applicants up to a 9,000 yuan bonus, according to Chinese media reports. As usual, Foxconn needs as many hands on deck as possible at its factory in Zhengzhou, China to assist with mass production of the upcoming iPhones. Apple is...

Apple May Release 4G-Only iPhone 12 in Early 2021

Tuesday August 11, 2020 5:28 am PDT by
In a research note shared by Business Insider, Wedbush Securities analysts said that Apple may release a cheaper iPhone 12 in early 2021 with no 5G connectivity. Wedbush initially believed Apple would launch a mix of 4G and 5G iPhone 12 models this fall. Following re-examination of Asian supply chains, analysts Daniel Ives, Strecker Backe, and Ahmad Khalil revised the predictions,...

2020 iMac Teardown Reveals Internal Changes and Similarities

Saturday August 8, 2020 12:44 pm PDT by
A teardown video, shared by OWC, reveals the internal changes in the new 2020 27-inch iMac. The 2020 27-inch iMac was announced earlier this week with 10th-generation Intel Core processors, AMD Radeon Pro 5000 series graphics, up to 128GB of RAM, up to 8TB of storage, a 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, higher fidelity speakers, and...

Apple Believes This German Cycling Path Logo Infringes on Its Own Logo

Wednesday May 1, 2019 9:51 am PDT by
Apple recently objected to the logo of a new German cycling path in an appeal filed with the German Patent and Trademark Office, according to German outlets General-Anzeiger Bonn and Westdeutscher Rundfunk. Apple reportedly takes issue with the logo's green leaf and supposed "bitten" right side, attributes the company believes are too similar to its own logo. The logo, registered with the ...

Apple Seeds First Public Beta of watchOS 7 to Public Beta Testers

Monday August 10, 2020 10:33 am PDT by
Apple today seeded the first public beta of an upcoming watchOS 7 update to public beta testers, one week after seeding the fourth beta to developers and a month and a half after the Worldwide Developers Conference. The update can be downloaded after installing the proper profile from Apple's Public Beta website. watchOS 7 should not be installed on a primary device as it is still an early...

Apple Watch Likely to Adopt MicroLED Display Technology in 3-4 Years

Monday August 10, 2020 2:55 am PDT by
This year's Apple Watch Series 6 is expected to feature an OLED screen like previous models, but a future model is likely to be the first Apple product to adopt MicroLED display technology, albeit not for another three to four years. That's the main takeaway reading between the lines of comments made by the chairman of Epistar, Taiwan's top LED producer, which is reportedly working on a...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...