Microsoft and Barnes & Noble join forces for e-reading advancement; settle litigation.

According to a communiqué issued today, Microsoft and Barnes & Noble (BN) seems to have settled the patent litigation that opposed them in the creation of a new company called Newco. The aim of the partnership is to "accelerate the transition to e-reading, which is revolutionizing the way people consume, create, share and enjoy digital content." From now on, "Barnes & Noble and Newco will have a royalty-bearing license under Microsoft’s patents for its NOOK eReader and Tablet products. This paves the way for both companies to collaborate and reach a broader set of customers."

Microsoft will make a $300 million investment for approximately 17.6% equity stake in Newco. BN will own approximately 82.4% of the company. The result of this partnership will be the availability of a Nook app for Windows 8. Most importantly, in terms of content, "the inclusion of Barnes & Noble's College business is an important component of Newco's strategic vision." “The formation of Newco 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,” said William Lynch, CEO of Barnes & Noble.


For his part, Andy Lees, President at Microsoft said, “The shift to digital is putting the world’s libraries and newsstands in the palm of every person’s hand, and is the beginning of a journey that will impact how people read, interact with, and enjoy new forms of content,”. He also added, “Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them. We’re at the cusp of a revolution in reading.”


Read the full statement