Microsoft is reportedly looking to buy up the digital assets of Nook Media in a $1 billion deal.
TechCrunch is claiming to have obtained internal documents outlining such a proposed deal for key elements of the ebook company. Microsoft will offer $1 billion to obtain the Barnes & Noble subsidiary’s entire ebook and tablet operation.
The document also reveals that Nook Media will stop producing Android-based tablets like the Nook HD by the end of the 2014 fiscal year. Rather, the company will move to a model where it offers its content through “third-party partner” devices.
It’s not clear exactly what form these third-party devices will take – or what part (if any) Microsoft will play in their creation – but they’re set to see the light of day next year.
As for those pure Nook e-reader devices, they won’t be discontinued in the immediate future. Rather, Nook sees a natural decline and phase out as the entire e-book format disappears with the rise of the tablet.
Microsoft already owns a 16.8 percent stake in Nook Media, so it’s perhaps unsurprising that the company would want to extend its investment in order to own and control a sizable digital content library – especially at such a steal of a price.
$1 billion might sound like a lot, but it’s significantly less than the initial Barnes & Noble valuation of $1.7 billion when Nook Media was first formed in October of last year.
For a decent Nook HD alternative, check out our Kindle Fire HD 8.9 review.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
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We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
