Microsoft Invests $300 Million in Nook to Take on Amazon and Apple in E-Book Market

nookMicrosoft and Barnes & Noble today announced the formation of a new Barnes & Noble subsidiary focused around the existing Nook digital e-reader and e-book business, as well as Barnes & Noble's college business. Microsoft will make a $300 million investment in the subsidiary, which is preliminarily being called Newco until an official name is chosen, and receive 17.6% ownership of the business.

One of the first benefits for customers will be a NOOK application for Windows 8, which will extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers in the U.S. and internationally.

The inclusion of Barnes & Noble’s College business is an important component of Newco’s strategic vision. Through the newly formed Newco, Barnes & Noble’s industry leading NOOK Study software will provide students and educators the preeminent technology platform for the distribution and management of digital education materials in the market.

As part of the deal, Microsoft and Barnes & Noble have also settled their patent dispute, which saw Microsoft suing for infringement by the Nook reader in a move Barnes & Noble had positioned as an attack on all Android-based systems. The new deal will see Barnes & Noble and Newco holding a royalty-bearing license on the Microsoft patents in question.

The Microsoft/Barnes & Noble venture seeks to increase competition in the e-book market, taking on both Amazon's dominant position and Apple's upstart status that has seen the iPad become a popular e-reading option for consumers but much lower adoption of iBookstore content. Barnes & Noble has had some success with Nook, but its momentum has slowed recently and recent antitrust suits against Apple and book publishers breaking down the new agency model for e-book distribution have raised concerns that the industry will quickly return to a near-monopoly for Amazon.

Popular Stories

Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...
iOS 26 Battery Glass Feature

iPhone 16 Pro Max 80% Charge Limit: One Year Later, Was It Worth It?

Wednesday September 24, 2025 3:58 pm PDT by
With the iPhone 15 series, I did an experiment and kept my iPhone's Charge Limit set at 80 percent for an entire year. It provided an interesting look at the impact of charge limits on battery longevity, so I decided to repeat it for the iPhone 16 line. Since September 2024, my iPhone 16 Pro Max has been limited to an 80 percent charge, with no cheating. As of today, my battery's maximum...
AirPods Pro 3 Newsroom

Apple's 'Back to School' Offer Ends Soon, Now Applies to AirPods Pro 3

Wednesday September 24, 2025 7:20 am PDT by
Apple's annual "Back to School" promotion for students ends soon, so act fast if you want to score free AirPods with the purchase of an eligible new Mac or iPad. Until Tuesday, September 30, college students and qualifying educational staff in the U.S. can receive free AirPods 4 with Active Noise Cancellation when they purchase an eligible new Mac or iPad from Apple. This is a $179 value. ...
iOS 26

Apple Continues to Prepare iOS 26.0.1 With Multiple Bug Fixes Expected

Sunday September 28, 2025 1:30 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Apple MacBook Pro M4 hero

New MacBook Pro Nears Mass Production, But Four Bigger Upgrades Expected Next Year

Sunday September 28, 2025 2:08 pm PDT by
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest. Apple often...
iPhone 17 Pro Colors

Skipped the iPhone 17 Pro? Here's What is Rumored for iPhone 18 Pro

Tuesday September 23, 2025 8:55 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are still a year away, there are already a few rumors about the devices that offer an early look ahead. Below, we have recapped some of the early iPhone 18 Pro rumors so far. This story was published previously, and it has been updated to reflect the latest rumors. Many early rumors prove to be true, but nothing is confirmed yet, and Apple's...
iphone 17 ceramic shield

Regular iPhone 17's USB-C Charging Speeds Tested With Apple Chargers

Friday September 26, 2025 9:01 am PDT by
The website ChargerLAB has tested the standard iPhone 17 model's USB-C charging speeds with a variety of Apple's chargers, from 18W to 140W. The device reached a peak charging speed of around 27W to 28W with these Apple chargers:29W USB-C Power Adapter 30W USB-C Power Adapter 35W Dual USB-C Port Power Adapter 35W Dual USB-C Port Compact Power Adapter 40W Dynamic Power Adapter with 60W Max...
Apple More Personal Siri Ad

Apple Responds to U.S. Class Action Lawsuit Over Delayed Siri Features

Friday September 26, 2025 6:57 am PDT by
In March, Apple delayed the launch of its personalized Siri features, and soon after the company was hit with multiple class action lawsuits over the situation. The plaintiffs said they never would have purchased an iPhone 16, or would have paid less, had they known Apple's marketing about the Siri features was false. In the U.S., all of the complaints were consolidated into one class...
maxresdefault

Review: A Week With the iPhone 17 Pro

Friday September 26, 2025 12:51 pm PDT by
Apple's iPhone 17 models have been out for a week now, so we thought we'd do a longer-term review of the flagship iPhone 17 Pro and Pro Max now that we've been able to spend more time with them. Subscribe to the MacRumors YouTube channel for more videos. MacRumors videographer Dan Barbera has a Silver iPhone 17 Pro and a Cosmic Orange iPhone 17 Pro Max, and despite a lot of concern over...

Top Rated Comments

Mazeman Avatar
175 months ago
Always two steps behind.

Are they going to rename it the "Zook"?
Score: 29 Votes (Like | Disagree)
KnightWRX Avatar
175 months ago
"let's use our money to buy into the market that apple is getting into instead of being innovative and building it from the ground up!". This is why I hate Microsoft. Lol

So...

NeXT -> Mac OS X, iOS
Astarte-DVD -> iDVD
SoundJam -> iTunes
NothingReal -> Shake, Final Cut
P.A. Semi -> A4, A5, A5X SoCs
Siri -> Siri

The list is of course longer : List of mergers and acquisitions by Apple (http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple)

Even Apple "doesn't build it from the ground up!", do you hate them ?
Score: 26 Votes (Like | Disagree)
Exhale Avatar
175 months ago
Instead of innovating, just throw your money at somebody else's product. That's what Microsoft is good at.

Apple innovates, the others copy.
I would not exactly say Apple (or anyone really) has been "innovative" when it comes to eBooks.

Nor is simply creating a new store of their own "innovative".
Score: 26 Votes (Like | Disagree)
Mad Mac Maniac Avatar
175 months ago
Increased competition is a good thing. A two horse race is good for nobody. (See: American Politics)

I think 3 roughly equal competitors is the best combination to increase competiton while still able to have the companies maximize profits. That's why I would like to see Windows Phone do well. I'm sick of the iOS vs Android and WP7 is actually a pretty good OS which ISN'T just a blatant rip off of iOS....
Score: 18 Votes (Like | Disagree)
chilly willy Avatar
175 months ago
Hope Apple is not as smug as many here are. Pride goeth before the fall as they say...

MS has $$$$ and can make some noise in this market if aligned with B&n. Good competition to keep Apple, Amazon and others on their toes.
Score: 17 Votes (Like | Disagree)
striker33 Avatar
175 months ago
I love how people still compare a tablet to an e-reader.

Misinformed journalism at its best.
Score: 16 Votes (Like | Disagree)