Some of the news Tuesday suggested that Microsoft Corporation (NASDAQ:MSFT) may look to make a play for the NOOK division and perhaps leverage it into some new opportunities for Microsoft in the mobile device universe. Apparently, there was more to it that just speculation. A document was revealed Thursday that seemed to indicate that Microsoft has made, or is making, a bid to buy the entire NOOK Media enterprise for about $1 billion. When Microsoft Corporation (NASDAQ:MSFT) put in its $300 million, that gave the company a 17-percent share in a $1.8-billion valuation company.
While one analyst in particular thinks that bid is a little too high – about $27 a share in Barnes & Noble Inc (NYSE:BKS) stock – the talk is certainly causing a stir on the Street. Late in the trading day Thursday, as this report surfaced that the bid was made as far back as late March, Barnes & Noble Inc (NYSE:BKS) stock has rallied, up 21 percent to $21.50 a share.
Barnes & Noble Inc has indicated that it would stop tablet production by 2014 and would focus on producing content for other tablet platforms. Could this type of play – the bid for NOOK media is only about 30 percent smaller than Barnes & Noble Inc total market cap – signify a future relationship between NOOK content and Microsoft Corporation (NASDAQ:MSFT) Windows-based tablets?
Maybe something similar to what Amazon.com Inc (NASDAQ:AMZN) set up with its Kindle devices – selling content that can only be used on a Kindle device or a Kindle app? Could you see something similar happening with the NOOK and Microsoft?
What do you think about this development? Microsoft Corporation (NASDAQ:MSFT) stock is down slightly on the day – is this an indicator of anything, and are you watching Barnes & Noble Inc (NYSE:BKS)? Let us know your thoughts in the comments section below.
DISCLOSURE: None
