Microsoft's Surprising Investment

Microsoft's Surprising Investment

Microsoft Logo

Barnes and Nobles was always a good bookstore. Competing with Amazon and coming out with their own electronic reading device, the Nook.

Both Amazon and Barnes and Nobles have to compete with Apple's iPad but on Monday, April 30^th, Microsoft announced that they will invest $300 million in Barnes and Nobles Nook department. If you look at Barnes and Nobles stock you can see a dramatically large increase. Barnes and Nobles also announced that they're coming out with a new black and white nook with a glowing screen.

         “This is a way for Microsoft to have a hand in the physical tablet business without actually being in the physical tablet business,” said Peter Wahlstrom, a senior analyst with Morningstar Equity Research.

Sergio Menezes says "I think Microsoft made a good investment in Barnes and Nobles Nook. I went to Barnes and Nobles once and wanted to buy the Nook right away. Even though an iPad seems cooler, for reading purposes, I would buy the Nook."

Barnes and Nobles also announced that they will come out with an app for the new Windows 8. This deal that they made with Microsoft has indeed increased their market value and will help them later in the future. The app deal they made will also keep giving them cash once the Windows 8 comes out.

         This has not been the first time Microsoft has invested in other companies. Back in 2007 Microsoft had invested millions of dollars in Facebook getting into the social business. Until now, Microsoft has still been making profits from Facebook stocks.

http://www.microsoft.com/investor/Stock/InvestmentHistory/All/default.aspx

http://dealbook.nytimes.com/2012/04/30/microsoft-to-take-stake-in-barnes-nobles-nook-unit/

Word count: 261

By Michael Muller