William Lynch, chief executive for Barnes & Noble, Inc. (NYSE:BKS), thinks this partnership will prove beneficial in the long run. He said that their relationship with Microsoft and the formation of the subsidiary will solidify their top position in the digital content world. He further explained that Microsoft’s investment with Newco along with partnership will allow them to expand their Nook digital reading content even further.
One of the partnership’s goals is to add a NOOK application to the upcoming Windows 8, which will allow users to access one of the world’s largest digital libraries of books, magazines, and newspapers. The partnership will also provide a bigger focus on the business of higher education by introducing NOOK Study software which will allow students and educators more access to digital education materials.
The president of Microsoft Andy Lees says that the shift from traditional libraries to digital libraries is essential. He also suggested that their complementary assets will speed up the innovation of e-reading with a wide range of devices which could inspire people to read more.
I think this partnership between Microsoft Corporation (NASDAQ:MSFT) and Barnes & Noble, Inc. (NYSE:BKS) has a lot of potential. Today, many people prefer to purchase digital books and periodicals over traditional hard copies, so it only makes since that both companies would join forces to be a part of this digital revolution. This partnership should also give them an upper-hand when it comes to competing with companies like Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL)