Microsoft Enters Book Business

The world’s largest software maker is entering e-books bazaar through investing $605 million during next five years in Barnes & Noble Inc in order to end monopoly of Apple Inc and Amazon.com on the expanding tablet computer market.

The move came to light just six months ahead of launching Windows 8 operating system by Microsoft (MSFT). The incorporation of a Nook app in Windows 8 would let them to struggle against Amazon’s Kindle Fire as well as iPad of Apple’. It will also provide Microsoft a direct involvement in electronic publishing market.

Analysts say that it is an excellent strategic deal, providing Microsoft a great opportunity to make Windows 8 a more appealing launching pad from an e-readers point of view.

In return, Barnes & Noble receives a much-needed capital and a means to get into the digital books market out of the United States of America. The new entity will be managed as well as majority owned by Barnes & Noble.

Barnes & Noble shares price increased by 90 percent in early trading, but dropped before ending at $20.75 with a net rise of 52%. Microsoft shares rose 0.1 percent and closed at $32.015.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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