Will This New Partnership Hurt Amazon?

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Barnes & Noble (NYSE:BKS) has upped the ante in the turf war for e-book market share. Following a $300 million investment from Microsoft (NASDAQ:MSFT), Nook Media will take on responsibility for Barnes & Noble’s digital reading and education business. Microsoft’s investment buys it a 17.6 percent equity stake in the subsidiary, and a dedicated reading app for Windows 8.

Barnes & Noble and Amazon (NASDAQ:AMZN) have been sparring for a while in both the e-book and print publication markets. Barnes & Noble chief merchandising officer Jaime Carey recently said the company would pull Amazon Publishing titles from its stores. Both Amazon and Barnes & Noble are releasing new tablets, and the secret sauce for their success will be content.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

Amazon has come out on top of a series of lawsuits involving major publishers and Apple (NASDAQ:AAPL) that involved price-fixing. Amazon retained the right to determine prices and has continued its strategy of pricing best sellers below the market at $9.99 in order to gain share.

Microsoft may see its investment in Nook Media as a way to compete with Apple’s growing content channels. Windows 8 is slated for release at the end of October, and the platform would be incomplete without robust access to media. Microsoft’s dubious tablet, the Surface, would also need a strong tie to digital content if it is to compete with Apple and Amazon.

Don’t Miss: Here’s the Apple Deal That Samsung Rejected.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business