Microsoft Corporation (MSFT) Employee Says Barnes & Noble, Inc. (BKS) NOOK Deal ‘Not Happening’

Microsoft Corporation (NASDAQ:MSFT) apparently didn’t really do anything, but Barnes & Noble, Inc. (NYSE:BKS) shares spiked last week with a rumor that floated which said that Microsoft, which owned a 17-percent stake in NOOK Media LLC – the Barnes & Noble subsidiary that creates the NOOK e-reader tablets and related content – was making a $1 billion offer to buy the entity outright and take it over, perhaps to incorporate the Windows operating system over the current Android OS that runs on the tablets now.

There was much discussion about the proposed deal, which by one calculation would have amounted to about $27 per share of Barnes &Noble, Inc. (NYSE:BKS) stock, which explains why when the rumor hit the street, the stock spiked to nearly $22 a share at point in the trading day.  The talk was that Microsoft Corporation (NASDAQ:MSFT) had invested $300 million in a company valued at about $1.8 billion when it started about 18 months ago, but after sales of the e-reader device had tanked miserably during this most recent holiday shopping season, the company was looking to make a value play to try to secure a better return on investment by having control of the business.

However, we  at Insider Monkey received word from a highly placed source inside Microsoft Corporation (NASDAQ:MSFT) who said that the story was only a rumor, and that nothing imminent is happening in regards to Microsoft and its investment in the NOOK Media entity, or reports that it is buying out Barnes & Noble, Inc. (NYSE:BKS) from the operation.

“I literally just walked out of the meeting today discussing all this Microsoft/NOOK hoopla going on,” the source wrote to us late Friday.

“This deal was nothing more than a rumor. Microsoft Corporation (NASDAQ:MSFT) will not come out and deny or confirm for legal reasons, but the company has no intention of acquiring the NOOK unit. NOOK is closely integrated with Android (hence their recent Google Play feature) and there is no way it could be ported to Windows 8. This was simply something TechCrunch rushed to report with no fact-checking.”

The employee also adds, “The acquisition is not happening in the foreseeable future as Microsoft Corporation (NASDAQ:MSFT) is assessing its options at this time.”

As this story continues to develop, or not, we will keep you posted with the latest information from Redmond.

Image above: Barnes & Noble, Inc. (NYSE:BKS)

DISCLOSURE: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!