Microsoft Ponies Up $300m Investment For Nook Spinoff

In what some may consider an odd move, Microsoft has just announced that it's investing $US300 million into a "strategic partnership" with Barnes & Noble to develop the future of ereading.

It's a huge investment — thanks to the fact that Microsoft has paid based on a huge valuation — into a spin-off from a product which, um, basically runs Android.

There is, however, method to Microsoft's move. First off, the deal includes some patents, which could account for the price. What's more convincing, however, is the fact that the cash injection will see a Windows 8 Nook application become available.

So while it is a large investment, this seems to be all about digital distribution: Nook, it seems, is Microsoft's answer to iBooks, and it will give Windows 8 users an alternative to Kindle.

With Barnes & Noble's bold foray into ebooks going strong, it will be interesting to see what such a close tie-in with a desktop and mobile OS can do for the successes of the Nook stable. [Microsoft, Barnes & Noble]



    I wonder how it will work outside the US? I am just about done with Kindle, given that book prices have gone through the roof in the last 6 months or so. Does anyone have a Nook?

    Hmmm... interesting.

    Still <3ing my Kindle thanks to the backlog of books I have to read - and a fair few items I've aquired in *ahem* questionable fashion. Good to see MS entering with its own product - let's see what difference it makes.

      Its not MS's own product, Nook is huge in the US. Barnes & Noble is the equivalent of Dymocks over here, so Nook's penetration in the US market is significant. MS are just trying to tie up a relationship.

    It will be interesting to see what transpires. I saw an article in the last few days that forecast Barnes nad Noble being taken over because the company is losing money. I can't remember the name, certainly not Microsoft.

    I am in Australia, B&N will not sell into this market. My ereader is a Nook Color and I have managed to convert it to an Android tablet so it will be quite intriguing to see what this union will produce.

    It would be great if B&N opened the doors to overseas customers.

      I agree that it would be great is B&N would open their doors to overseas customers. I have the B&N tablet and will root it to Android this weekend (or brick it - one of the 2). I bought it specifically to have easier access to american magazines.

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