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Barnes and Noble has confirmed it has made cuts to its Nook division but added that the group's hardware team has not been eliminated, contrary to previous reports.
Barnes and Noble has announced that going forward it will no longer make its own Nook tablets, choosing instead to enter into agreements with unnamed third party manufacturers to make future tablets.
Last week rumor spread that Microsoft is interested in purchasing Nook Media, but a new report citing a "highly placed source inside Microsoft" claims the original rumor is completely untrue.
A new rumor claims that Microsoft is considering a buyout of most of Nook Media, the subsidiary of Barnes and Noble that includes the Nook tablets and eReader business, for $1 billion.
Microsoft already owns part of Nook Media, which is mostly owned by Barnes and Noble, but one person is speculating that Microsoft could jump in and buy all of Barnes and Noble.
Barnes and Noble admitted today that sales of its Nook tablets were below expectations for the nine week holiday period, but stopped short of sharing specific sales numbers.
Barnes and Noble has announced that UK-based learning company Pearson will invest $89.5 million in Nook Media, its subsidiary that also includes Microsoft as an investor.