Microsoft announced Monday that it is investing $300 million in the Nook, the Barnes and Noble e-reader that is the closest competitor to Amazon’s Kindle. The investment gives Microsoft a 17.6 per cent stake in a new entity valued, based on the infusion, at $1.7 billion.
While they have yet to name the new company — it is referred to as Newco in the statement — the new partners did announce that there will be a Nook app in Windows 8, Microsoft’s next-generation desktop OS expected to launch with a near-final version in June. As
part of the deal the two companies have also settled patent litigation.
Microsoft previously announced the end of Microsoft Reader,
effective August 30, 2012.