Barnes & Noble, Microsoft get cozy over Nook e-reader
Microsoft Corp will invest $300 million in Barnes & Noble Inc’s Nook e-reader, gaining a foothold in the fast-growing e-books market as the bookseller gets more firepower to compete against Amazon.com’s Kindle and Apple Inc’s iPad.
The move comes as Microsoft is looking to generate excitement around its tablet-friendly Windows 8 operating system, expected on the market around October.
The deal announced on Monday includes Microsoft taking a stake in the bookseller’s college bookstore division. It also means that the two companies have settled their patent dispute.
Shares of Barnes & Noble soared nearly 70 percent on Monday, while Microsoft shares were nearly flat.
The agreement values the Nook and textbook businesses, which will form a new subsidiary, at $1.7 billion.
READ MORE: Microsoft buys Nook stake; B&N shares soar