Microsoft and Barnes & Noble Partnership on Nook and BKS/MSFT Change

The great-looking strategic partnership agreement between the IT giant Microsoft and one of the largest Global bookseller, Barnes & Noble, on April 30, 2012 to facilitate the inclusion of the Nook, the eBook app by Newco in Windows 8 – the $1.7 billion subsidiary of Barnes & Noble – had a mixed reaction at the NYSE Stock Board. The agreement which would facilitate $300 million investment by Microsoft with 17.6% equity share and Barnes & Noble retaining rest of 82.4% was looked at, cautiously, by the investors at NYSE.

The trend of the BKS and MSFT is  given in the table below:Stock of Barnes & Noble (NYSE: BKS) started the year 2012 with an upward trend. It’s opening-trend on the board has been fluctuating between 10.78 – 25.79 while its closing trend has been moving between 10.78 – 20.75. On April, 13, it opened with a routine of 13.07 points and closed normally at slight increase at 13.68. But, the next day proved to be the heyday for the BKS when it opened at 25.79 but closing at 20.75 with a change in value of 47.38%.

Throughout the week, it continued downward rally but still it fluctuated far above the year 2012 average of 13.85.

From last weekend closing on April 27 to the last weekend closing on May, 5, 2012, BKS witnessed a marvelous change of 23.68% in the value of BKS. Whole this process of change in values of BKS and MST is displayed, graphically, below: It is a significant evidence that BKS holders saw the Barnes & Noble partnership with Microsoft a little cautiously but as whole they liked it with a hope of bright future for the BKS.

On the other hand, this partnership agreement had almost no felt-effect on the MSFT.

This is rather a health indication for the eBook lovers that stock investors looked, rather, favorably, at such deals which may encourage the other tech companies to consider such partnerships to promote healthy educational environment by using the state of the art technology.

Congratulations to Microsoft and Barnes & Noble and rather whole the education/academic community for the acceptance of such brave move, accepted at the NYSE Stock Board by the investors.