Well, that's a fascinating end to all those legal tussles. Microsoft and bookseller Barnes and Noble have decided to buddy-up within the face of competitors like Amazon and Apple. The strategic partnership -- Microsoft loves 'em -- would are available in the shape of a brand new Barnes and Noble subsidiary that deals with all things Nook, along with its education business. The bookseller would hold onto the lion's share at 82.4 percent, with the remainder 17.6 percent in Microsoft's control. The primary benefit posited can be a Nook app for the incoming Windows 8. Barnes and Noble's Nook Study software would also take advantage of a friendly boost on all that Windows hardware. Maybe all those other legal matches will resolve in similar warm-and-fuzzy business hook-ups -- but we doubt it.
Barnes & Noble and Microsoft Form Strategic Partnership to Advance World-Class Digital Reading Experiences for Consumers
Big apple, NY and Redmond, WA (April 30, 2012) – Barnes & Noble Inc. (NYSE: BKS) and Microsoft (NASDAQ: MSFT) today announced the formation of a strategic partnership in a brand new Barnes & Noble subsidiary, as a way to build upon the history of sturdy innovation in digital reading technologies from both companies. The partnership will accelerate the transition to e-reading, that is revolutionizing the way in which people consume, create, share and revel in digital content.
The recent subsidiary, stated during this release as Newco, will compile the digital and school businesses of Barnes & Noble. Microsoft will make a $300 million investment in Newco at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake. Barnes & Noble will own approximately 82.4% of the brand new subsidiary, in an effort to have an ongoing relationship with the company's retail stores. Barnes & Noble has not yet selected the name of Newco.
Among the many first benefits for purchasers would be a NOOK application for Windows 8, so as to extend the reach of Barnes & Noble's digital bookstore by providing one of the most world's largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers within the U.S. and internationally.
The inclusion of Barnes & Noble's College business is a vital element of Newco's strategic vision. In the course of 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 available in the market.
"The formation of Newco and our relationship with Microsoft are important parts of our technique to capitalize at the rapid growth of the NOOK business, and to solidify our position as a pacesetter inside the exploding marketplace for digital content within the consumer and education segments," said William Lynch, CEO of Barnes & Noble. "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 let us significantly expand the business."
"The shift to digital is putting the world's libraries and newsstands inside the palm of each person's hand, and is the start of a journey which will impact how people read, interact with, and revel in new kinds of content," said Andy Lees, President at Microsoft. "Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people not to just read stories, but to be a part of them. We're on the cusp of a revolution in reading."
Barnes & Noble and Microsoft have settled their patent litigation, and moving forward, Barnes & Noble and Newco may have a royalty-bearing license under Microsoft's patents for its NOOK eReader and Tablet products. This paves the best way for both companies to collaborate and reach a broader set of consumers.
Newco
On January 5, Barnes & Noble announced that it was exploring the strategic separation of its digital business for you to maximize shareholder value. Barnes & Noble is actively engaged within the formation of Newco, in order to include Barnes & Noble's digital and school businesses. The corporate intends to explore all alternatives for a way a strategic separation of Newco may occur. There can also be no assurance that the review will lead to a strategic separation or the creation of a stand-alone public company, and there's no set timetable for this review. Barnes & Noble doesn't intend to comment further in regards to the review unless and until a choice is made.
From WhatNewsToday.net
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