Report: Microsoft Planning To Buy Nook Media For $1 Billion

NOOK Windows 8 App

Microsoft helped Nook Media split from the retail arm of B&N last October with its $300 million investment. It was valued by Microsoft for a 16.8 percent stake in the Nook Media LLC. At the time of the deal, the partnership was aimed at getting B&N content on Windows 8 tablets through Nook apps. There were various reports and rumors about Windows based Nook device, but it didn’t happen. Today, TechCrunch reports that Microsoft is planning to buy Nook Media business for about $1 billion.

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. Speculation about the plan to discontinue the Nook surfaced in February. The documents we have are not clear on whether the third-party tablets would be Microsoft’s own Windows 8 devices, tablets made by others (including competing platforms) or both. Third-party tablets, according to the document, are due to get introduced in 2014.

Apart from the access to Nook media content partnerships, I’m not sure why Microsoft would want to buy Nook’s declining business which is also facing heavy competition from Amazon. Is Microsoft planning to enter e-books business for the second time?

Source: TC

  • SirMinstral

    be nice if the nook win 8 app would come to the UK first it was promised last November.

  • PoohGQ

    Like I always say.. I never understand why Microsoft always is “first with innovative technology” only to let some other company introduce it and succeed in it before they jump back in.. I still have my MS Reader apps for the desktop and PocketPC.. =/

    • Bugbog

      I think it’s only since the Xbox 360 that any divisions, other than Windows/Server/Office, got Serious attention, due to the realised success (circa 2006 – 2009), that everything does not have to push the “Microsoft Trinity”
      And, I think, it’s only been in the last few years, since that period, that the intention has been to grow them into ‘Billion’ dollar businesses in their own right, but also integrate them into the Microsoft ‘Ecosystem!’

  • David

    Nook recently had so many good sales and it seems they are trying to sell (get rid off) as much as possible with these reducing price and get one nook free if you buy HD offers.
    And I could tell it is more trying to get rid off inventory to replace it with something new soon or get out of reader business (Hardware) in general.
    Sales prices and offers are so tempting but I didn’t buy it because first of all it runs Android and anything Google/Android will not be in my home and I will not use anything Google.
    Second if these news all true and they come with new Nook base on Windows I prefer to get that instead of having a device with some crappy OS called Android/Chrome.
    Anyway all these fire sales and recent good offers for Nook and Nook HD points to something is about to happen and change is coming. New hardware bas eon Windows or no more Nook hardware.
    I will get Nook device base on Windows any day over Android device and if there is no more Nook hardware Surface Pro will do the job for me.

  • Albert

    I could see this working for Microsoft,having the ability to read on any windows pc phone and new Xbox would encourage me to switch to Nook. Microsoft just need to resolve the issue where those of us outside the USA have a way to purchase from the app and not require a US account.