Recently, Barnes & Noble sponsored an event to discuss about the launch of its Tablet in non-US markets. Previously, I have described why the company should not launch its Tablet in the non-US market. The reason is quite obvious that digital bookseller are not as matured in apps and cloud era as Apple is. Now, users are being more attracted by numbers of apps, cloud storage, and integrated services. However, the company has decided to slice the price of its Nook Tablet from $279 to $199 in order to lure a vast numbers of folks worldwide.
Indeed, the digital bookseller needs a support to launch its Nook Tablet in non-US markets. Today, the company has taken an incredible step and has decided to team-up with Microsoft in order to hold up its conventional digital book-selling business.
Microsoft has decided to invest $300 million, which will bring 17% stake to the company in newly formed business, valued $1.7 billion. While Barnes & Noble will own approximately 82.4% stake in the amalgamation.
CEO of Barnes & Noble– William Lynch—said, “The formation of [this new subsidiary] and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the Nook business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments. Microsoft’s investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business.”
In term of partnership, I think, Microsoft is targeting to make its sturdy penetration in the Tablet segment. However, the company is going to release its Windows 8 OS (which bridges between Tablet and PC devices) later this year. Presently, the company is teaming-up with Nokia in Smartphone segment, which has stimulated the company to grow its market share across the world.
However, Nook has also proven itself in the market that it’s no way vulnerable than Amazon’s Kindle Fire. Presently, Nook is being powered by Android 2.3 OS, and Microsoft will definitely try to break down the relationship between Barnes & Noble and Google on the issues of fragmentation of Android OS, security vulnerability and release of Google Nexus Tablet later this year. Anyway, Microsoft is big fish, has recently announced its Q3 earnings report ending March this year, generated $17.41 billion revenue, up 6% from same quarter of the prior year.