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Wednesday, May 8
Microsoft (MSFT) is offering $1B for Nook Media's (BKS) e-reader, tablet, and e-book ops (but...
Microsoft (MSFT) is offering $1B for Nook Media's (BKS) e-reader, tablet, and e-book ops (but not its college bookstore arm), TechCrunch reports. If true, the valuation assigned to NM is well below the $1.7B given when Microsoft bought a 17.6% stake (diluted to 16.8% by Pearson's investment) in April '12. Documents indicate NM (exc. the college ops) is expected to post FY13 (ended in April) revenue of $1.09B (-10% Y/Y) and an EBITDA loss of $360M, plans to discontinue its tablet line (makes sense, given market share trends), and will focus on content sales. Is such a business worth $1B? Regardless, Barnes & Noble ($1.06B market cap) should see a pop on the report. (FY13 warning) (FQ3 results)