Barnes & Noble and Microsoft Form Partnership

The digital e-reading market just got a little more interesting as Barnes & Noble recently announced a strategic partnership with Microsoft.

Consumers have the opportunity to benefit from this partnership, as a Windows 8 application will be used for Nook. This will provide “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,” according to Book Business.

The subsidiary created by the partnership is reportedly focusing on the digital and college business of B&N. The Nook Study software will serve as a tool for students and educators.

The subsidiary partnership, referred to as NewCo, includes a $300 million investment from Microsoft, giving them a 17.6% equity stake in the new business.

Microsoft and Barnes & Noble coming together on the digital e-reading forefront makes it more possible to compete with company’s like Apple and Amazon. With the help of Microsoft, Barnes & Noble has a better chance of competing on a global scale.

This move has some people speculating that Microsoft will begin creating products specifically for Barnes & Noble’s e-reading devices.

Regardless, it is clear that the tablet competition is about to get more intense.


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