Barnes & Noble shares rise following reports of Microsoft’s US$1bn Nook acquisition

9 May 2013

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The Nook HD and Nook HD+

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Pre-market trading saw shares in Barnes & Noble rise 23pc following a report claiming that Microsoft is planning to buy up Nook Media’s digital assets.

In April 2012, Microsoft invested US$300m in Barnes & Noble to create new subsidiary focused squarely on the e-reading market. Through this investment, Microsoft gained a 17.6pc stake in Nook Media.

But, according to internal documents cited by TechCrunch, Microsoft now intends to acquire all of Nook Media’s digital operations for US$1bn, including its e-readers and tablets.

TechCrunch also claims Nook Media will discontinue production of Android-based tablets by the end of next year to focus solely on content provision through third-party devices to arrive in 2014, while its e-readers business is to be allowed to decline naturally.

Following this report, MarketWatch noted that shares in parent company Barnes & Noble rose 23pc in the pre-market trading window.

Neither Microsoft or Barnes & Noble have commented on the report.

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Elaine Burke is managing editor of Siliconrepublic.com

editorial@siliconrepublic.com