The e-books market is growing very rapidly indeed and tech giant Microsoft will look to capitalize on this market potential by putting as much as $605 million over a period of five years on the Nook e-reader by Barnes & Noble. I guess this is a very important move for Microsoft to make given that its rivals Amazon and Apple have been making some pretty big inroads on the tablet computer market that has exploded.
In six months’ time, Microsoft will have its new operating system Windows 8 out and this move to tap the e-books market is actually a very good idea for Microsoft that will allow the Redmond, WA based firm to compete with the Amazon Kindle Fire and the Apple iPad.
Microsoft is known to have a pretty significant cash hoard and this deal is actually just 0.5 percent of it. The deal also allows Microsoft to compete on the online app store front, something which it has been unable to do given the hegemony that Google, Apple and Amazon have in this business domain.
In addition to Barnes & Noble stock soaring, the firm also stands to benefit by being able to get into the digital books market and also get a lot of capital that it needed to obtain. Barnes & Noble has spent millions of dollars into the Nook development and partnering with a tech giant like Microsoft that has such deep pockets will help it greatly.
Analysts at major investment firms all seem to agree that this is a pretty solid deal for Microsoft.