Coach Outlet.Microsoft announced Monday, will be Barnes & Noble (Barnes & Noble,) Nook sector investment of $ 300,000,000, which will allow the latter to maintain a strong competitive edge in the field of competition has become increasingly encourage e-book. At the same time, the alliance of the two companies also means that competition in the field of digital reading will be even more tragic. Coach Outlet Stores
In this transaction, Microsoft acquired a 17.6% stake in the new subsidiary, the figure of the Nook sector valued at approximately $ 1.7 billion. Barnes & Noble shares soared 51.68 percent on Monday, the market value is nearly doubled from Friday, the company's digital business received strong support efforts to promote future growth.
Although the market is always full of variables, but the alliance of Microsoft and Barnes & Noble still allow the industry to be surprised. Amazon in the field of e-books dominate the market share was as high as 90%, but in the next several years, Apple, Google join the competition, Microsoft has now joined the battlefield.
The leader of the alliance the two companies have in their respective markets, but has gradually lost its leading edge. Barnes & Noble is the largest U.S. bookstore chain operator, over 75% market share of electronic books, but still and Amazon. Through the alliance, the Barnes & Noble has a strong business around the world partner. Meanwhile, Microsoft has also received the opportunity to participate in competition in the e-book market, which may decide the future direction of science and technology, retail and media.
The future, consumers will be web page browsing, movie watching, book reading and other activities have been focused on the Tablet PC application, in order to meet this era, Microsoft is a radical re-build its core product Windows system.Alliance with Barnes & Noble, will allow Microsoft to stand directly opposite of the Amazon as well as the company's popular Kindle device. Other competitors include Apple and the company's highly successful iPad, and is committed to build their own system, the expansion of Google Play store Google.
Forrester Research analyst James Maikui Wei (James McQuivey) pointed out that the alliance of Microsoft and Barnes & Noble, "apparently with Apple, Amazon two companies dominant in their respective fields".
Many publishing industry executives are worried about the Amazon once again set off the book price war. In the middle of last month, several publishing giant with the U.S. Department of Justice reached a settlement, the settlement agreement so that the Amazon may become more low-cost sales of electronic books and subversive threat to the existing e-book pricing system.
As part of the deal, Microsoft and Barnes & Noble will stop debate on a series of technology patents to each other. Barnes & Noble will be the upcoming Windows 8 system to develop a Nook applications, Microsoft's new operating system has undergone major reforms, will support touch-screen operation. Windows 8 will also be equipped with its own application store, but industry analysts believe that with a trading partner of the books and other forms of entertainment, Microsoft is extremely valuable, and so avoid the use of competitors' products.Barnes & Noble will benefit the company the opportunity to promote products face a number of Windows users, these users are usually not their e-books links. Coach Kristin Bags
Mai Kuiwei expected, Barnes & Noble for Windows 8 system specifically developed a Nook applications, the two companies will cooperate closely in terms of hardware, software and services.According to the trading rules, Microsoft will be Barnes & Noble Reader departments to invest $ 300 million, and promised to re-invest an additional $ 350 million in the next five years. These funds part of Nook products will be used for global marketing and the other part is converted to revenue in the future. The agreement is not exclusive, Barnes & Noble has an alliance with other companies, such as Google.
Monday's news for Barnes & Noble is dull over the years put a stop to. As of last week, the company's share price in the last 12 months rose only $ 0.03, but in cooperation with Microsoft was announced, investors in one fell swoop the company's share price pushed the 52-week high on Monday to close at $ 20.75 an increase of 51.68%.
Hedge fund Jana Partners is one of the largest shareholder of Barnes & Noble, founder Barry Rosenstein (Barry Rosenstein) of the Fund said in a statement: "This is a tremendous victory for shareholders. When we invest in Barnes & Noble any valuation of the market is not even on the Nook business, which is extremely ridiculous. "Barnes & Noble Nook business, investing heavily in the company's electronic reader and tablet products have become the Amazon Kindle, one of the major competitors. Nook recognized by consumers, the latest version of the retail price of $ 140 black and white readers received positive market feedback.
However, due to the Nook business sector continues to require substantial capital investment, the investors are still on the profits of the Barnes & Noble bookstore worried.Morningstar Equity Research senior analyst Peter Wirth Zhuomu,,, Peter Wahlstrom Monday, commented: "Barnes & Noble is now a more powerful, more stable financial partner."
Coach Outlet Store Online.According to informed sources said on condition of anonymity, since the first quarter of last year to accept $ 204 million funding of the free media investment, Barnes & Noble has repeatedly rejected many potential partners in the program of cooperation. In January, Barnes & Noble for the first time publicly acknowledged the company is evaluating the business "strategic choice", which means that they may be sold or split Nook business.
The insider said that Barnes & Noble about two months ago with Microsoft contacts, including Microsoft CEO Steve Ballmer (Steven A. Ballmer) and Barnes & Noble CEO William Lynch (William J. Lynch, Jr.) are involved in the talks.Coach Factory Outlet
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