or Connect
AppleInsider › Forums › Mobile › iPad › Microsoft to invest $300M in Barnes & Noble's Nook e-book platform
New Posts  All Forums:Forum Nav:

Microsoft to invest $300M in Barnes & Noble's Nook e-book platform

post #1 of 57
Thread Starter 
Microsoft announced on Monday that it will take a $300 million stake in bookseller Barnes & Noble's digital Nook e-book business, potentially paving the way for a new spin-off company.

The new partnership will create a subsidiary that will include not only the Nook business, but also Barnes & Noble's college textbook business as well, according to The Associated Press. The deal also means Barnes & Noble will create a Nook application for Windows 8, much like the company's existing e-book offering for Apple's iPhone and iPad.

Both companies also revealed that they are exploring the possibility of spinning off the e-book and college businesses, which could result in a stock offering or sale.

The partnership places Microsoft in the midst of the e-book business where Barnes & Noble has already been competing with Apple's iBookstore and the Amazon Kindle platform. Apple also increased its push for digital textbooks earlier this year, with the release of iBooks 2 for iOS.

Barnes & Noble also offers education-focused content with its own Nook Study software. That, along with its college booksellers business, will now fall under the umbrella of the new subsidiary, in which Microsoft has a $300 million stake.

"Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them," said Andy Lees, president at Microsoft. "We're on the cusp of a revolution in reading."

Nook


Lees was formerly the head of Microsoft's Windows Phone division, but was pulled from that role last December. Microsoft CEO Steve Ballmer said in a memo at the time that he had asked Lees to work in a new, "time-critical" role "focused on driving maximum impact in 2012 with Windows Phone and Windows 8." He said the change would allow Microsoft to "really deliver" the potential Microsoft has with both Windows 8 and Windows Phone.

Though it still operates brick-and-mortar stores that sell hard copies of books, Barnes & Noble has attempted to shift its business to the digital world, selling the Nook e-reader hardware and also offering e-books through its Nook platform on a range of devices. The company lags behind Amazon's Kindle platform, which similarly offers the Kindle e-reader hardware and multi-platform e-book software.

"The formation of Newco and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the Nook business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments," Barnes & Noble CEO William Lynch said.
post #2 of 57

In addition Microsoft has offered B&N a license to the supposed IP that they claimed the Nook infringed on. As an educated guess Microsoft wasn't willing to take a chance with the patents they've thrown at Android licensees being invalidated. That was a distinct possibility as Barnes & Noble had some surprising success at standing up to MS while most of the others taking licenses had just rolled over.

http://www.groklaw.net/articlebasic.php?story=20120207110012776
 

melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #3 of 57
I have to chuckle at MS some times. The statement, "we are on the cusp of a revolution in reading" is so indicative of their 20th century mindset. They must live in a perpetual state of denial of reality. They believe PCs still are cutting edge and the world is waiting with bated breath for the release of 'Lipstick on a Pig', Aka Windows 8.

Someone needs to equip a few of them with a few iPads and let them see where the cusp actually is in 2012.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #4 of 57

This should be logged under, "Grasping At Straws".

 

B & N, you had a chance with the Nook. Now...

Hmmmmmm...
Reply
Hmmmmmm...
Reply
post #5 of 57

At first glance, this looks like just another Microsoft epic fail... but thinking about it, this is actually huge. It'll be interesting to see where they land in terms of agency Vs wholesale. I am guessing the former, given Barnes and Noble is a brick and mortar book seller. Might be bad news for Amazon.

Do not overrate what you have received, nor envy others.
15" Matte MacBook Pro: 2.66Ghz i7, 8GB RAM, GT330m 512MB, 512GB SSD

iPhone 5 Black 32GB

iPad 3rd Generation, 32GB

Mac Mini Core2Duo 2.26ghz,...

Reply

Do not overrate what you have received, nor envy others.
15" Matte MacBook Pro: 2.66Ghz i7, 8GB RAM, GT330m 512MB, 512GB SSD

iPhone 5 Black 32GB

iPad 3rd Generation, 32GB

Mac Mini Core2Duo 2.26ghz,...

Reply
post #6 of 57
"We're on the cusp of a revolution in reading." LOL. I'm sure they've got Amazon spooked.

No doubt it will get positive media spin. I swear Microsoft is paying some of these tech writers and analysts good coin with all the pimping of Windows 8 they're doing. There's an article on thestreet.com this morning titled: How Microsoft is Scaring Apple. Yes I'm sure is quaking in their boots over Windows 8.
post #7 of 57

I'll have to admit, Microsoft's own .LIT format for ebooks (late 90s) was way ahead of its time, so they've been looking at ebooks for some time.  That, combined with their failed "courier" hardware, it's clear MS has had lots of mistimings and false starts with ebooks.

 

Buying into Nook was a no-brainer.  B&N is a strong third place competitor on the field.  Now you will see Nooks marketed to businesses and educational markets and even in Microsoft Stores.  MS-oriented IT people looking for a tablet will now consider the Nook, even better if the MCSE books are available on the platform, among other MS references.

 

This has potential.  Competition with Kindle and iPad and good things for everyone.

post #8 of 57

 

Quote:
Originally Posted by Rogifan View Post

"We're on the cusp of a revolution in reading." LOL. I'm sure they've got Amazon spooked.
No doubt it will get positive media spin. I swear Microsoft is paying some of these tech writers and analysts good coin with all the pimping of Windows 8 they're doing. There's an article on thestreet.com this morning titled: How Microsoft is Scaring Apple. Yes I'm sure is quaking in their boots over Windows 8.

 

MS have a reputation for not giving up on things. If someone had said in 2000, or 2001 that MS should be "afraid of Apple", they'd have been laughed at. Who's laughing now?

 

I don't think this is a bad thing for the industry; Amazon certainly needs some more competition.

Do not overrate what you have received, nor envy others.
15" Matte MacBook Pro: 2.66Ghz i7, 8GB RAM, GT330m 512MB, 512GB SSD

iPhone 5 Black 32GB

iPad 3rd Generation, 32GB

Mac Mini Core2Duo 2.26ghz,...

Reply

Do not overrate what you have received, nor envy others.
15" Matte MacBook Pro: 2.66Ghz i7, 8GB RAM, GT330m 512MB, 512GB SSD

iPhone 5 Black 32GB

iPad 3rd Generation, 32GB

Mac Mini Core2Duo 2.26ghz,...

Reply
post #9 of 57

 

Quote:
Originally Posted by Zoolook View Post

At first glance, this looks like just another Microsoft epic fail... but thinking about it, this is actually huge. It'll be interesting to see where they land in terms of agency Vs wholesale. I am guessing the former, given Barnes and Noble is a brick and mortar book seller. Might be bad news for Amazon.

 

If anything the partnership probably has Apple more in mind than Amazon. With Apple recently indicating a desire to see it's iPad become a de-facto digital textbook, MS is serving notice that they don't intend to sit back and watch Apple gain traction in education while MS twiddles their thumbs.

melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #10 of 57
Is this one of the reasons Apple's stock is down over 2% so far today? How many days now in the past two weeks has Apple's stock been up? 1 or 2?
post #11 of 57

 

Quote:
"Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them," said Andy Lees, president at Microsoft.

 

Only if the story is a tragedy.

post #12 of 57

 

Quote:
Originally Posted by Rogifan View Post

Is this one of the reasons Apple's stock is down over 2% so far today? How many days now in the past two weeks has Apple's stock been up? 1 or 2?

 

Naw... AAPL was bound to go down after going up $50 in one day on a quarterly that was a tad weak in the future forecast.

Hmmmmmm...
Reply
Hmmmmmm...
Reply
post #13 of 57

Well, that seems like money well wasted.

post #14 of 57

 

Quote:
Originally Posted by Gatorguy View Post

 

 

If anything the partnership probably has Apple more in mind than Amazon. With Apple recently indicating a desire to see it's iPad become a de-facto digital textbook, MS is serving notice that they don't intend to sit back and watch Apple gain traction in education while MS twiddles their thumbs.

 

If MS had bought the Nook outright, and announced plans to rapidly iterate the software into a Metro app with Nook based, stripped down Metro ebook readers to follow, then yeah.

 

As it is, not so much.  They'll have another (largely redundant) library of ebooks available on Win8 and.....?  It's just a 17% stake in the spun off Nook, not really jumping in with both feet, is it?  And nothing short of jumping in with both feet, with a really compelling ebook solution, is going to make a dent in the Amazon/iOS juggernaut.  Apple has made ebooks a central part of iOS, with iBooks Author a major bid to grab a chunk of the electronic textbook market.  No auxiliary devices, no parallel development tracks, no partnerships, no "synergy."  Just a simple to grasp, iOS gets you this on these devices.  MS hooks up with the third place vendor and announces..... something?  How is that even much better than "twiddling their thumbs"?

They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
Reply
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
Reply
post #15 of 57

 

Quote:
Originally Posted by Gatorguy View Post

 

 

If anything the partnership probably has Apple more in mind than Amazon. With Apple recently indicating a desire to see it's iPad become a de-facto digital textbook, MS is serving notice that they don't intend to sit back and watch Apple gain traction in education while MS twiddles their thumbs.

 

No it is not against Apple nor Amazon. This is a direct blow against Google. MS is pulling Android from under Googles feet. Guess what search and cloud services will be on the Nook now?

post #16 of 57

Hmmmm. Given M/soft's track record with partners I would have felt bad for B&N, who have supported well my reading fixation over the years. Since it is only a stake in the spin-off, it might just have a chance. B&N gets the money to get it up and on it's feet, M/soft gets the Nook app for Win8Metro platform. Both wins. It remains to be seen if the new company can survive living under Google's and Amazon's shadows, iBooks isn't a big concern at the moment.

 

I'm sure they are also watching the FTC litigation against the publishers and Apple - if the FTC fails to make their case, it will be a setback for Amazon and gives the Newco folks a leg-up on competing, by disarming Amazon's effective monopoly.

If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
Reply
If you are going to insist on being an ass, at least demonstrate the intelligence to be a smart one
Reply
post #17 of 57

 

Quote:
Originally Posted by digitalclips View Post

I have to chuckle at MS some times. The statement, "we are on the cusp of a revolution in reading" is so indicative of their 20th century mindset. They must live in a perpetual state of denial of reality. They believe PCs still are cutting edge and the world is waiting with bated breath for the release of 'Lipstick on a Pig', Aka Windows 8.
Someone needs to equip a few of them with a few iPads and let them see where the cusp actually is in 2012.

 

Pretty closed minded, no?. The e-reader market is huge, iPad isn't the answer to everything. There's plenty of people that don't want all the noise of a tablet and just a nice e-reader. I know people WITH iPads that would rather read e-ink for long stretches rather than LCD. What's next, chuckling at people who enjoy reading physical books too?

I'm not a pessimist. I'm an optimist, with experience.
Reply
I'm not a pessimist. I'm an optimist, with experience.
Reply
post #18 of 57
Quote:
Originally Posted by island hermit View Post

 

Quote:
Originally Posted by Rogifan View Post

Is this one of the reasons Apple's stock is down over 2% so far today? How many days now in the past two weeks has Apple's stock been up? 1 or 2?

 

Naw... AAPL was bound to go down after going up $50 in one day on a quarterly that was a tad weak in the future forecast.

But after having been down 12% the previous 2 weeks or so. I don't think I'm the only one scratching my head at the wild swings in Apple's stock. Though I suppose the NY Times hit piece over the weekend might have something to do with today's slide.
post #19 of 57

I love AppleInsider but covering the above Microsoft story while apparently pretending the following MS story doesn't exist is a bit self-serving.

 

http://www.eweek.com/c/a/Mobile-and-Wireless/Wozniak-Windows-7-Phone-More-Beautiful-than-iPhone-857635/

post #20 of 57

Once again MS is following the MT ("Me Too") business model and is, once again, so far behind the curve they have no hope of catching up.  

 

Company that was once great but now failing (i.e. Nokia)?  Let's buy in, get in the game and in no time we'll be #1!  

 

B&N is on the road to bankruptcy and MS invests $300MM.  

 

Steve Balmer is still alive and well!

 

Just sad.

post #21 of 57

 

Quote:
Originally Posted by digitalclips View Post

I have to chuckle at MS some times. The statement, "we are on the cusp of a revolution in reading" is so indicative of their 20th century mindset. They must live in a perpetual state of denial of reality. They believe PCs still are cutting edge and the world is waiting with bated breath for the release of 'Lipstick on a Pig', Aka Windows 8.
Someone needs to equip a few of them with a few iPads and let them see where the cusp actually is in 2012.

 

I love it. LOL! lol.gif

post #22 of 57

New business strategy on M$ part, it appears they realize they can not do it themselves so they keep throwing money at depart companies who have no choice but take the money and hope for the best. Oh yeah, they did that with Apple and I wonder if they hoping for another success like that. Does? M$ still own any of that stock they got back in 97 or was the CFO too stupid to hang in.

post #23 of 57

 

Quote:
Originally Posted by NasserAE View Post

 

 

No it is not against Apple nor Amazon. This is a direct blow against Google. MS is pulling Android from under Googles feet. Guess what search and cloud services will be on the Nook now?

 

I didn't know the Nook even offered cloud services. It's not a full-fledged Google device in the first place with no Google services that I'm aware of. It's not even compatible with Google's application market, so I don't see any harm to Google even if the Nook changed to a Microsoft OS.

melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #24 of 57
Quote:
Originally Posted by VonBrick View Post

I love AppleInsider but covering the above Microsoft story while apparently pretending the following MS story doesn't exist is a bit self-serving.

 

http://www.eweek.com/c/a/Mobile-and-Wireless/Wozniak-Windows-7-Phone-More-Beautiful-than-iPhone-857635/

Why either story warrants placement on an Apple rumor site I don't get.
post #25 of 57
Quote:
Now you will see Nooks marketed to businesses and educational markets and even in Microsoft Stores.
"even in Microsoft Stores"?
Really?
Wow. That's sure to increase sales at a blistering pace of maybe 1-2 more PER DAY!
post #26 of 57

BKS is up 69.5%  MSFT up .02%

"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
"Swift generally gets you to the right way much quicker." - auxio -

"The perfect [birth]day -- A little playtime, a good poop, and a long nap." - Tomato Greeting Cards -
Reply
post #27 of 57

 

Quote:
Originally Posted by Dick Applebaum View Post

BKS is up 69.5%  MSFT up .02%

 

After a steady slide this should give BKS holders a bit of hope. (Still not worth half of what it was 6 years ago)

Hmmmmmm...
Reply
Hmmmmmm...
Reply
post #28 of 57
I'm Thinking this has to do with the education market also for digital textbooks. If they can make a $50-$100 offering vs $350 for an iPad 2, I think they'll have success. They'll just have to make it extremely durable and larger display than 6".
post #29 of 57

 

Quote:
Originally Posted by Gatorguy View Post

 

 

I didn't know the Nook even offered cloud services. It's not a full-fledged Google device in the first place with no Google services that I'm aware of. It's not even compatible with Google's application market, so I don't see any harm to Google even if the Nook changed to a Microsoft OS.

 

Does it use Google search?!

 

MS doesn't have to change to Windows OS. They only need to keep Google out of as many Android devices as possible.

post #30 of 57

 

Quote:
Originally Posted by NasserAE View Post

 

 

Does it use Google search?!

 

MS doesn't have to change to Windows OS. They only need to keep Google out of as many Android devices as possible.

 

I don't know that it does currently default to Google Search. My wife has one and the search function wasn't too impressive the few times I've tried it. If B&N have it set to Google Search by default then no harm in trying Bing as the Nook could use improvement in that area IMO

melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #31 of 57

 

Quote:
Originally Posted by thataveragejoe View Post

 

 

Pretty closed minded, no?. The e-reader market is huge, iPad isn't the answer to everything. There's plenty of people that don't want all the noise of a tablet and just a nice e-reader. I know people WITH iPads that would rather read e-ink for long stretches rather than LCD. What's next, chuckling at people who enjoy reading physical books too?

 

I was specifically referencing the comment that I quoted inferring they, Microsoft, were about to change everything.

From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #32 of 57

Time to ditch Android B&N!

 

 

Java creator James Gosling: 'Google totally slimed Sun'

Gosling said that Sun was "wronged" by Google and that Oracle is right to sue Google for the way it used Java code in Android.

 

 

http://news.cnet.com/8301-1035_3-57423754-94/java-creator-james-gosling-google-totally-slimed-sun/?tag=mncol;topStories

CNN: Obamacare largest tax increase in American history

 

FORBES: ObamaCare's 7 Tax Hikes On Middle class

Reply

CNN: Obamacare largest tax increase in American history

 

FORBES: ObamaCare's 7 Tax Hikes On Middle class

Reply
post #33 of 57

 

Quote:
Originally Posted by FriedLobster View Post

Time to ditch Android B&N!

 

 

Java creator James Gosling: 'Google totally slimed Sun'

Gosling said that Sun was "wronged" by Google and that Oracle is right to sue Google for the way it used Java code in Android.

 

 

http://news.cnet.com/8301-1035_3-57423754-94/java-creator-james-gosling-google-totally-slimed-sun/?tag=mncol;topStories

 

Thanks for link.

 

LOved this on the same CNET thread ...

 

 

(G)rab
(O)thers
(O)riginality
(G)arble
(L)egal
(E)ntitlement
Posted by Atari800
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #34 of 57

NEWCO? Are you fuggin kidding me with that? Sounds like a bankrupt insurance company from the start.

post #35 of 57

   

post #36 of 57

 

Quote:
Originally Posted by Rogifan View Post


Why either story warrants placement on an Apple rumor site I don't get.

 

What don't you get? These are Apple's direct competitors in this space. Of course the coverage is relevant.

post #37 of 57

 

Quote:
Originally Posted by vandil View Post

I'll have to admit, Microsoft's own .LIT format for ebooks (late 90s) was way ahead of its time, so they've been looking at ebooks for some time.  That, combined with their failed "courier" hardware, it's clear MS has had lots of mistimings and false starts with ebooks.

 

Buying into Nook was a no-brainer.  B&N is a strong third place competitor on the field.  Now you will see Nooks marketed to businesses and educational markets and even in Microsoft Stores.  MS-oriented IT people looking for a tablet will now consider the Nook, even better if the MCSE books are available on the platform, among other MS references.

 

This has potential.  Competition with Kindle and iPad and good things for everyone.

 

Can I have some of what premium blend you're smoking? :)

post #38 of 57
Say bye-bye to B&N's 691 brick & mortar stores.
post #39 of 57

 

Quote:
Originally Posted by Hoss View Post

Say bye-bye to B&N's 691 brick & mortar stores.

 

I hate to see book stores go as I they are some of my favorite places to go on the weekends. I think I have every O'reilly book now in my personally library. It's great that Microsoft has taken an interest in the Nook, I was really worried that B&O would stop making them. The Nook Color was my first tablet I bought, I still use it today as my main ebook reader. Yes the iPad or other larger Android tablets can also be used as a ebook reader but I think they are to big and heavy. The Nook is just perfect for reading, I'm defiantly going to grab the Glow when it is released here, the battery lasts forever on that thing, people are getting almost 3 days of use.

When I looked up "Ninjas" in Thesaurus.com, it said "Ninja's can't be found" Well played Ninjas, well played.
Reply
When I looked up "Ninjas" in Thesaurus.com, it said "Ninja's can't be found" Well played Ninjas, well played.
Reply
post #40 of 57

 

Quote:
Originally Posted by deepkid View Post

 

 

Can I have some of what premium blend you're smoking? :)

 

What do you mean, the Nook is a very good product with awesome accessories, great price, long lasting battery, huge library to choose from. Why wouldn't anyone want one.

When I looked up "Ninjas" in Thesaurus.com, it said "Ninja's can't be found" Well played Ninjas, well played.
Reply
When I looked up "Ninjas" in Thesaurus.com, it said "Ninja's can't be found" Well played Ninjas, well played.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPad
  • Microsoft to invest $300M in Barnes & Noble's Nook e-book platform
AppleInsider › Forums › Mobile › iPad › Microsoft to invest $300M in Barnes & Noble's Nook e-book platform