Microsoft and Barnes & Noble announced a partnership that may spawn some interesting portofolio of ebooks once the first Windows 8 tablets are out. Microsoft will invest $300 million in Barnes & Noble, bringing it a 17% stake in the new business branch called Newco, valued at $1.7 billion.
Amazon is starting to rule the Android tablet market and iTunes has a very large selection of Books, so Microsoft must do something to appeal to the public on the e-reading/education area. B&N wants to capitalize on the growth of the Nook business and to get a more important position in the digital content market. The new subsidiary resulted from the investment is named Newco and it will bring together the digital and College businesses of Barnes & Noble. Barnes & Noble will own 82.4% of the subsidiary.
I can’t say this move wasn’t announced ahead, since back in January B & N announced that it was exploring the option of separating the digital business segment to increase shareholder value. I can already envision an ultracheap slate with a dumbed down Windows 8, unbeatable $180 price tag and huge sales. Of course that’s only my speculation now…
