Microsoft 'offers' to buy Nook Media

Microsoft 'offers' to buy Nook Media

Microsoft has offered to buy Nook Media for $1bn, according to reports.

TechCrunch cites internal documents it has seen revealing that Microsoft would want to buy the e-book business out of Nook Media, but leave behind the college book division.

According to Techcrunch, the documents also indicate that Nook will discontinue tablets by the end of fiscal 2014 and opt instead to distribute content through apps on ‘third party partner’ devices, which are due to be introduced next year.

Nook e-readers, according to the documents, are projected to have a gradual, natural decline as more consumers move to using tablet devices.

The documents value B&N at $1.66bn and projections show the Nook unit bringing in total revenue of $1.215bn for fiscal year 2012 (ending April 30th) and a loss of $262m in earnings before interest, taxes, depreciation and amortization (EBITDA).

Neither Barnes & Noble or Microsoft have commented on the reports.

Last April, Microsoft invested $300m, forming “a new subsidiary” of the bookselling chain to include the store’s Nook, digital and college business. The partnership saw Microsoft taking a 17.6% stake in the spin-off business.

In February this year, Pearson bought a 5% stake in Nook Media, investing $89.5m in cash in the business, valuing it at $1.8bn.