The Inquirer-Home

Microsoft pays $300m for Barnes & Noble subsidiary stake

Android lawsuit disappears overnight
Mon Apr 30 2012, 15:14

CLOSED SOURCE SOFTWARE HOUSE Microsoft has inked a deal with Barnes & Noble giving it a stake in a newly created subsidiary, ending the legal dispute between the two firms over Google's Android operating system.

Microsoft and Barnes & Noble have been in court for over a year after Microsoft sued the bookseller over its Nook tablet. Now the two firms have signed a deal that will see Barnes & Noble create an e-book subidiary, at which Microsoft will throw $300m for 17.6 per cent equity.

As Microsoft has dropped its lawsuit against Barnes & Noble, the latter was quick to promote its Nook by saying the application will be available for Windows 8. Although Microsoft didn't mention any other products or applications, by taking a sizeable chunk of equity in the new venture it is safe to say the firm will try to use it to push its Windows 8 operating system.

Andy Lees, president of Microsoft's Windows Phone division said, "Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them." Surprising words from a company that has been suing Barnes & Noble for billions.

Microsoft said Barnes & Noble and its new subsidiary will pay a royalty licence fee to Microsoft for its Nook tablet and ebook reader, meaning the firm has signed up yet another Android device maker. However Microsoft had to pay $300m in order to avoid what could have been a damaging trial.

Barnes & Noble has yet to decide on a name for its new subsidiary but Microsoft said the deal "paves the way for both companies to collaborate", which could mean that Barnes & Noble will be putting out a Windows based tablet. µ


Share this:

blog comments powered by Disqus
Subscribe to INQ newsletters

Sign up for INQbot – a weekly roundup of the best from the INQ

INQ Poll

Masque malware is putting iPad and iPhone user data at risk

Has news of iOS malware made you reconsider getting an iPhone?