Microsoft plans to buy the Nook Media Barnes & Noble eBook joint venture, TechCruch reports-- and is willing to cough up $1 billion for the pleasure.
Through the acquisition Microsoft will get the Nook Media digital operation (eBooks) and the Nook eReaders and tablets hardware unit, leaving the college book division to B&N.
According to TechCrunch Nook Media also plans to discontinue making Android-based tablets by end fiscal 2014, part of a transition towards an entirely app-based "3rd party partner" device retail model.
Originally part of B&N, the Nook business split from the retailer on April 2012 following a Microsoft investment worth $300m (or 16.8% of the joint venture) made in order to get Nook content on then nascent Windows 8 devices. Nook apps are currently also available on every major platform, including Android and iOS.
According to Forbes 2012 Nook business sales total $933.7 million (up from $695.1m for 2011), making it the fastest growing part of B&N. Should it sell the eBook unit, B&N will only have a slow growth (if not declining) bookstore business, one with 691 big-box stores (down from 720 in 2010) and sales worth $4.85bn (from $4.95bn in 2010). It also has 533 employees tasked with pushing Nook devices to unsuspecting bookstore visitors.
Then again, maybe B&N wants to stick to knows best-- books-- leaving technology to the, well, tech giant.
What does the future reserve for the humble Nook devices? Would Microsoft fold the tablets within its Surface business and let the eReaders die a natural death? As one might expect, neither Microsft nor B&N want to comment on the story, but we might learn more on the proceedings in the following weeks.
Go Microsoft Mulling Nook Media Purchase for $1 Billion (TechCrunch)
Go What's Left if B&N Sells the Nook Business to Microsoft? (Forbes)