Report of Microsoft Buying Nook Media Boosts B&N Shares
After a TechCrunch story yesterday that Microsoft plans to buy the digital assets of Barnes & Noble's Nook Media for $1 billion, B&N stock closed at $22.08 a share, up 24.3%, on a down day on Wall Street. Neither B&N nor Microsoft commented on the TechCrunch story.
Citing "internal documents," TechCrunch also said that Nook will discontinue selling Android-based tablets by the end of fiscal year 2014 and instead sell Nook content through apps on third-party devices.
Last year Microsoft bought 17.6% of the newly formed Nook Media subsidiary for $300 million. TechCrunch said that the internal documents value B&N as a whole at "$1.66 billion. When Nook Media was first formed, the valuation of that division alone was $1.7 billion. When Pearson invested $85 million at a 5 percent stake in January, it was valued at $1.8 billion. If the deal goes through, Microsoft's $1 billion purchase will be well below the price it had originally bought in at."