Microsoft bets big on ebooks - invests $300 million into Nook subsidiary

Signs deal with Barnes & Noble

Microsoft bets big on ebooks invests 185 million into Nook subsidiary

Microsoft bolstered its ebook plans this week, announcing a digital link-up with US book firm Barnes & Noble.

The deal is worth a massive $300 million (£185 million) and will mean that the computing giant will have 17.5 per cent stake in a new subsidiary called Newco (this is a temporary name) which will look after Barnes & Noble's digital and college businesses.

Nuking the Nook?

The big news coming from this is that the Nook digital bookstore will be bundled with Windows 8 – which could well spell the end of the Nook tablet, given that this app will work on every upcoming Windows 8 tablet and computer.

"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."