Microsoft is buying Nook Media for $1 billion according to leaked documents obtained by tech website TechCrunch.
Under terms of the expected deal Microsoft would redeem its preferred stock in Nook Media which would provide the tech giant with the company’s controlling interest.
The documents also show Barnes & Noble’s intentions to ditch the Google Android mobile platform by the end of 2014. If Nook leaves the Google Android platform it would move all content reception to third party device operating systems.
Microsoft invested $300 million in the platform last year. The investment from Microsoft allowed Nook Media to break away from Barnes & Noble. The investment provided Microsoft with a 16.8 percent share in the company. Microsoft hoped with its investment that it could bring Nook Media content to the Windows 8 platform which it ultimately accomplished. Nook currently offers content for Google Android, Apple iOS and Windows 8.
Nook Media also offers a Mac OS X client but it does not work with OS X 10.8 Mountain Lion.
While Nook Media plans to ditch Android those users with Simple Touch devices will continue to receive support. The report suggests that Nook Media will allow for a natural decline in the e-reader division as customers move towards tablets with more features and ebook capabilities.
Last month we reported that the B&N Nook was moving towards in-app purchases in order to streaming revenues while attracting new customers. At this point we don’t know how the Microsoft buyout will affect those purchases and the devices app eco-system as a whole.
There’s still no official Nook app for Windows Phone devices which could be good motivation for Microsoft to take full control of Nook Media.
While the e-reader market is expected to go flat over the next few years the inclusion of ebooks on tablets is here to stay and that might be enough motivation in itself for Microsoft to buy Nook Media.
[Image via dailytech]