Rumor: Microsoft thinking about buying most of Nook Media for $1 billion?

Microsoft has reportedly offered to buy most of Barnes and Noble's Nook Media subsidiary, which includes its Nook tablet and eReader business, for $1 billion. The news comes from TechCrunch, which claims it has obtained internal documents on this acquisition plan.

The article states that the deal would not cover Nook Media's college textbook division. Instead, Microsoft would buy out the eBook, eReader and tablet portion of the business. TechCrunch also claims that Nook Media plans to discontinue the Android-based Nook tablets by the end of the company's 2014 fiscal year, which would end in late April 2014. Instead, Nook content would be offered via apps that would run on third-party hardware.

Microsoft and Barnes and Noble announced their partnership with to form what would later be called Nook Media in April 2012. Microsoft invested $300 million in the business and currently controls 16.8 percent of Nook Media. However, the only tangible portion of this partnership on Microsoft's side was the launch of the Nook eReader app for Windows 8 in fall 2012.

If Microsoft does end up buying most of Nook Media, it would certainly be a crushing blow for Barnes and Noble, which has been trying to compete with its major rival Amazon.com in the eReader business. Neither Microsoft nor Barnes and Noble have commented on this new report.

Source: TechCrunch | Image via Barnes and Noble

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newyorkcitymale said,
Why wouldn't they want Nook's college text book division? That seems like it'd be the most valuable portion of Barnes & Noble.
From what I gather, that also includes the brick & mortar college book stores, which makes sense for MS to not want.

If it means a Microsoft Nook presence in every Barnes and Noble store, this could be a huge win, even if the sales aren't spectacular, that's a lot of e-content and floor presence.

In all seriousness, the Nook HD just got a whole lot better with the addition of Google Play Store. Too bad it is finding a difficult time to compete with the Kindle Fire.

Wow...a billion dollars??

That is a little bit of an overpay if they only had 311 million in revenue last holiday season?

texasghost said,
Wow...a billion dollars??

That is a little bit of an overpay if they only had 311 million in revenue last holiday season?

I think that price also includes content licensing and not just hardware/software for the Nook.

Interesting, especially so when you consider that it is less than a week since app purchases through the Google Play store were made available on the Nook HD's, and all new Nook HD and HD+ now ship with the Play store pre-installed.

Why would MS want to start being an Android device reseller (assuming that they wouldn't give all existing device owners the flick) instead of coming up with a device of their own running Windows that could just have the Kindle, Kobo and Nook apps installed???

20legend said,
Interesting, especially so when you consider that it is less than a week since app purchases through the Google Play store were made available on the Nook HD's, and all new Nook HD and HD+ now ship with the Play store pre-installed.

Why would MS want to start being an Android device reseller (assuming that they wouldn't give all existing device owners the flick) instead of coming up with a device of their own running Windows that could just have the Kindle, Kobo and Nook apps installed???

It's not about the devices or the software they run, it's about the digital content licenses that Nook has. Those are much more valuable than the device, MS wants to beef up it's e-book/mag offerings as well as any other things that they could sell you as a subscription.

GP007 said,

It's not about the devices or the software they run, it's about the digital content licenses that Nook has. Those are much more valuable than the device, MS wants to beef up it's e-book/mag offerings as well as any other things that they could sell you as a subscription.

Microsoft serious lacks in this part of the ecosystem where Apple and Google dominate. Microsoft already offers Music and Movies, Books is the logical next step. You want a place where the consumer is always shopping in your store.