Thursday, April 18, 2024

Rumor: Microsoft Could Buy Nook

Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

According to TechCrunch, Microsoft is in talks with Barnes & Noble to buy Nook’s digital assets. The report suggests Microsoft isn’t interest in Nook e-reader hardware, but rather in its content distribution capabilities.

TechCrunch’s Eric Eldon and Ingrid Lunden wrote, “Microsoft is offering to pay $1 billion to buy the digital assets of Nook Media LLC, the digital book and college book joint venture with Barnes & Noble and other investors, according to internal documents we’ve obtained. In this plan, Microsoft would redeem preferred units in Nook Media, which also includes a college book division, leaving it with the digital operation — e-books, as well as Nook e-readers and tablets. The documents also reveal that Nook Media plans to discontinue its Android-based tablet business by the end of its 2014 fiscal year as it transitions to a model where Nook content is distributed through apps on ‘third-party partner’ devices.”

Michael J. De La Merced with The New York Times noted, “Shares of Barnes & Noble skyrocketed in early trading on Thursday after a report said Microsoft was offering $1 billion for the digital assets of the bookseller’s e-reader business. In morning trading, shares of Barnes & Noble were up 18 percent, at $20.99.”

Ars Technica’s Casey Johnston recalled, “Microsoft bought a 17.6 percent stake in Nook for $300 million almost exactly a year ago, when the digital Nook division split off from Barnes and Noble proper, resulting in a Nook app for Windows 8. Since then, British publishing company Pearson has purchased a 5 percent stake for $89.5 million.”

PCWorld quoted NPD analyst Stephen Baker, who said, “It appears that Microsoft [with its rumored Nook buy] is looking for a content partner brand that they can use to help develop content opportunities beyond the movies and music they provide today through Xbox Live.”

Subscribe to Data Insider

Learn the latest news and best practices about data science, big data analytics, artificial intelligence, data security, and more.

Similar articles

Get the Free Newsletter!

Subscribe to Data Insider for top news, trends & analysis

Latest Articles