Monday, April 30, 2012

Microsoft Sees A Future With The B&N Nook

Microsoft just took a position with the Nook, Barnes and Noble's stock is rising and Liberty Media must be feeling good too.   The resulting investment by Microsoft to Nook adds a well needed boost to help it expand in the e-book and tablet space and fight off Amazon and Apple.  So will the Nook technology improve?  Will Windows 8 become its operating system?  And how will the added dollars help to win customers from its rivals?

Some see this investment as the push to separate Nook from its physical bookstore.  "Some on Wall Street see the Nook as a fast-growing technology asset trapped within a slower retail stock. They have theorized that Barnes & Noble would spin off the Nook business to give it a chance to trade at a higher valuation." I wonder if the Nook is a stand alone business would it only hasten the loss of the Barnes & Noble Bookstores.  And that would be a sad day.

For now, Nook and B&N must feel a sigh of relief with this new investment.  This added capital will certainly help to speed up innovation and bring better products to market.  It could be the kick in the pants that the Nook needs to be competitive.

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