“The landscape has changed,” said Wahlstrom. “The strategicagreement with Microsoftprovides increased distribution domestically and internationally, which I think is going to be a big push for Barnes & Noble.”
Revenue sharing from Microsoft will enable the bookseller to get its digital strategy “trending towards profitability,” he said.
Without the funding, Wahlstrom says, Barnes & Noble would have faced an “uphill battle” getting the Nook to compete with Amazon.com’s Kindle as well as Apple’s iPad.
Maxim Group’s Tinker agreed, saying Barnes & Noble now will have the chance to boost its digital and brick-and-mortar business.
“Everyone’s trying to figure out how to make a brick-and-mortar and digital strategy go together,” he said. “You can’t just go digital today.”
Additional News: Barnes & Noble Stock Soars On Microsoft Stake
Additional Views: How Microsoft Is Scaring Apple
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Disclosures:
Neither Peter Wahlstrom nor John Tinker personally own shares of BKS.
Disclaimer
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Follow Jennifer Leigh Parker on Twitter @jparker741.