Tuesday, 1 May 2012

Microsoft Barnes & Noble deal Nokia implications

Microsoft is forming a Strategic Partnership in digital reading experiences with American book retailer Barnes & Noble. In the deal Microsoft will inject cash into a new subsidiary that will spin-off Barnes & Noble tablets called Nook and its College business into a new company. The aim is to accelerate the transition to digital reading, for example in college books.

Microsoft gets a 17.6% strategic stake in the new company, which will maintain a relationship with Barnes & Noble stores. In connection with the deal, the high profile patent litigation concerning Barnes & Noble’s use of Android is settled and a licensing agreement is being entered into. Barnes & Noble had countered by asking antitrust authorities and the like to look into whether Microsoft is using tactics to try to weaken smaller players using Android. Nokia (OMX: NOK1V, NYSE: NOK) had been a part of this row, in that Barnes & Noble had been asking for certain documentation from the company in the matter pertaining to its patent agreement that were made available to Microsoft in their partnership deal.

Nokia of course has been rumoured to be nearing a tablet launch of its own. Now the question is, would the three even join forces in a Windows 8 based tablet, would there simply by a Nook Reading App for Windows 8 and is Nokia just left out of the party. The Nook E-readers manufacturer currently is Foxconn.

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