- May 10, 2013
The American book retailer saw its shares climb following reports Microsoft are considering offer to acquire Nook business
Shares in America’s biggest books retailer Barnes & Noble climbed nearly 20% yesterday after a report that Microsoft is considering an offer to acquire its Nook business – B&N’s tablet and e-book business and a rival to Amazon’s Kindle.
The technology website TechCrunch reported that Microsoft, which already owns 17% of Nook Media, was proposing a $1bn offer to buy Nook’s digital assets. Microsoft acquired its stake in the Nook Media unit a little more than a year ago in a deal that valued the entire business at $1.7bn. But Nook Media sales have been disappointing. Sales dropped 26% in the last three months as Nook sold fewer digital readers and tablets and had to cut prices.
B&N has spent hundreds of millions of dollars on the unprofitable unit, trying to make its devices competitive against devices from Amazon, Apple and Google, among others.
B&N and Microsoft both declined to comment.
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