Microsoft And Barnes & Noble Agree Digital Partnership

Microsoft has invested $300 million (£185 million) in a “strategic partnership” with US bookseller Barnes & Noble, manufacturer of the Nook e-reader.

The partners have settled their patent litigation and will work together to expand the reach of Barnes & Noble’s digital catalogue, including on Windows 8 tablets.

Noble intentions

“Barnes & Noble and Microsoft today announced the formation of a strategic partnership in a new Barnes & Noble subsidiary, which will build upon the history of strong innovation in digital reading technologies from both companies,” said the announcement. “The partnership will accelerate the transition to e-reading, which is revolutionising the way people consume, create, share and enjoy digital content.”

Barnes & Noble will control 82.4 percent of the new subsidiary, while Microsoft’s investment will secure it a 17.6 percent stake in the company, currently unnamed and referred to only as Newco.

The first product of this partnership will be the creation of a Nook app for Windows 8, which will allow users to access Barnes & Noble’s library of eBooks, magazines, newspapers and educational material.

“Microsoft’s investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business,” said William Lynch, CEO of Barnes & Noble.

“The shift to digital is putting the world’s libraries and newsstands in the palm of every person’s hand, and is the beginning of a journey that will impact how people read, interact with and enjoy new forms of content,” added Andy Lees, president at Microsoft. “Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them. We’re on the cusp of a revolution in reading.”

The new company will have a royalty-bearing license under Microsoft’s patents for Barnes & Noble’s Nook e-readers. The retailer had previously asked federal regulators in the US to investigate Microsoft’s Android licensing policies for possible antitrust issues after the Redmond firm insisted Barnes & Noble should pay for using Android on the Nook.

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