Microsoft Takes On the iPad with $300 Million Investment in NOOK

Barnes & Noble today announced a new subsidiary in their company, temporarily named Newco, that will be responsible for the book retailer’s Nook e-Reader and tablet business. Interestingly, Microsoft has invested $300 million into this subsidiary, claiming a 17.6% stake in ownership of the Nook business. Look out, Apple and Amazon.

One of the first benefits for customers will be a NOOK application for Windows 8, which will extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers in the U.S. and internationally.

The joint venture between Barnes & Noble and Microsoft will help to heighten the competition in the eBooks market, which has long been dominated by online retailer Amazon. Apple has recently entered the e-reading landscape with iBooks for iPhone, iPod touch, and iPad, so Barnes & Noble could be bolstering their Nook lineup of e-readers and tablets before Apple takes control of the market. Do you think that Amazon can be taken down by Apple or the combination of Barnes & Noble and Microsoft?

[Barnes & Noble via MacRumors]

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