Microsoft is boarding one of the upcoming Nooks, the ebook reader from Barnes & Noble: after legal disputes, the two companies are forming an alliance and launching “Newco”.
Plot twist in the Microsoft – Barnes & Noble saga: the two companies, on the verge of initiating a fierce legal battle over alleged patent violations, have instead announced an alliance and the creation of “Newco“, a new digital publishing venture.
Microsoft has decided to invest approximately $300 million in this operation, thus acquiring about 17.6% of the newly formed Newco, a company that will specifically operate in the digital publishing sector, particularly for academia.
The remaining share package is owned by Barnes & Noble, an established player in the industry.
Given the agreement now in effect between Microsoft and Barnes & Noble, further developments stemming from this partnership are being rumored: it is plausible that the first concrete and market-visible step of this alliance could be the release of a Nook running Windows 8.
In this regard, the close nature of the agreement would fit into contexts far different from a simple union in the publishing sector and thus in ebooks strictly speaking: Microsoft would thereby make its entry into the tablet and ebook reader sector through the front door, as the Nook is one of the most appreciated and reliable devices of its kind.
The two companies neither confirm nor deny, but it appears work is already underway on the implementation of a Nook application also on Microsoft 8 PCs, in order to provide a comprehensive set of tools to counter the dominance of other industry players: from Kindle to Apple, and Android, the ebook market could be reopened by this new entry into the field.
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