Microsoft challenges Amazon with $300m investment


Microsoft challenges Amazon with $300m investment

Warwick Ashford

Microsoft is challenging Amazon's dominance of the e-book market by investing $300m in Barnes & Noble's Nook reader and university textbook businesses.

News of the deal sent shares in Barnes & Noble up 76% to $24.09 in US morning trading on Monday, according to the Guardian. Microsoft's stock was also up, but by just two cents to $32.

The plan is to set up a joint subsidiary that could eventually be spun off with Microsoft to own 17.6% of the equity.

The deal ends a number of lawsuits between the two companies and includes plans by Microsoft to include a Nook reader application in Windows 8 due to be released later this year.

A Nook application for Windows Phone is sure to follow, but Barnes & Noble has indicated that Nook will continue to be available on competing devices, such as Apple's iPhone.

Analysts said the inclusion of the application in Windows 8 will give the Nook reader a major boost, improving is ability to compete with Amazon's Kindle, which holds about 60% of the market.

Nook accounts for just 25% of the US ebook market, but Barnes & Noble dominates in university textbooks for e-readers.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy