Microsoft, Nook to Develop New Reader App

By FOXBusiness

Barnes & Noble (NYSE:BKS) amended an agreement with Microsoft (NASDAQ:MSFT) this week that paves the way for a new Microsoft e-reader app to be co-branded with the Nook.

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Under the amendment to their two-year old partnership, a newly-developed app will deliver content from Nook Media to Microsoft devices, according to filings with the Securities and Exchange Commission.

This further flushes out a partnership sparked in 2012 when Microsoft invested $300 million for a minority stake in Nook Media. At the time, Microsoft had said it would offer a Nook app on its Windows 8 operating system.

Nook will discontinue the existing Nook Windows app and cooperate in “good faith” with Microsoft to transition users to the new app, for now dubbed as the Microsoft Consumer Reader. Nook will also cease efforts to build a Windows phone app.

The two also updated their revenue sharing agreement, though terms were not disclosed.

Shares of Microsoft were down 0.31% to $38.15 in recent trade. Those of Barnes & Noble were up 0.60% to $21.77.

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