Microsoft invested around $300 million into Barnes and Nobel’s Nook platform. “As demand for digital content continues to increase, we are focused on bringing ground-breaking reading and learning content and technologies to more people in more formats than ever before, including the imminent launch of our exceptional NOOK reading application for Windows 8,” said William Lynch, CEO of Barnes & Noble during the announcement of the agreement. “NOOK Media is a leader in developing the next generation of digital reading and we look forward to the company bringing one of the world’s largest digital libraries to Windows 8 devices via their upcoming Windows 8 app,” commented Andy Lees, President at Microsoft.
Ever since the announcement, Nook is facing great challenges in the e-book market and they are updating their agreement with Microsoft. Thanks to ZDNet’s Mary Jo Foley, new 8-K filing by Barnes & Noble has all the details of the updated agreement.
NOOK will discontinue the Nook app for Windows 8 devices and Microsoft will release a new Consumer Reader app that will allow all the NOOK users to transfer their content to the new platform. Also, Microsoft’s upcoming Reader platform will be powered by NOOK’s content.Microsoft and NOOK Media also agreed to updated revenue sharing to address this possibility.
From the 8-K filing,
“Pursuant to the Amendment, NOOK Media LLC (“NOOK Media”) and Microsoft agreed to co-branding within the Microsoft Consumer Reader for reading content delivered by NOOK Media. The Amendment also provided that subject to certain conditions NOOK Media would be permitted to discontinue distributing the NOOK Windows app and will cooperate in good faith with Microsoft to transition users to the Microsoft Consumer Reader. Microsoft and NOOK Media also agreed to updated revenue sharing to address this possibility. The Amendment also permits NOOK Media to cease efforts with respect to a Windows phone app.”