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Barnes & Noble Inc. stocks surged 68 percent to $23 yesterday in New York after announcing that Microsoft will invest $300 million in a new subsidiary that combines the bookseller’s Nook digital reader and college businesses. You’ll remember that the Nook e-reader was launched in 2009 to compete with Amazon’s Kindle, allowing users to buy, download and read digital versions of books and magazines.

E-books are big business and, although some people say that they’ll always read hard copy books, the younger generation is transitioning rapidly to the technology preferring to use e-books than pick up the actual book—it’s cool. I made the transition faster than I ever thought I would.

By integrating the NOOK with the new Windows 8 operating system, it will digitally house Barnes and Noble college education book business and revolutionize the education system. The $300 million investment by Microsoft will make Barnes and Noble’s NOOK e-book reader available to millions of new customers.

This has no doubt stirred up some fear in both the e-book business and the brick and mortar book who are struggling to compete with the new digital market. Local libraries are already changing their modus operandi to survive and be useful and Barnes and Noble has already started evolve their business by selling items in their bookstores that we wouldn’t normally expect to find.

Click on the link Washington Post to read their version of the article published yesterday.

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1 Comment on Microsoft and Barnes and Noble $300 million E-book deal

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