Barnes & Noble and Microsoft team up to launch Nook Media
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Barnes & Noble and Microsoft team up to launch Nook Media

EReaders are considered a major product these days, as more consumers and business use the devices to replace traditional paper-bound books. A deal struck between Microsoft and Barnes & Noble earlier this year will result in a new subsidiary called Nook Media LLC that seeks to capitalize on the technology's growing popularity.

The Seattle-based technology giant has a 17.6 percent interest in the newly established company. As a result, the new NOOK reading application will run on the upcoming Windows 8 operating system. According to the release announcing the new firm, companies will be able to use content from Nook Media to improve digital reading capabilities and give better access to digital content.

Barnes & Nobel CEO William Lynch said that Nook users will be able to view the content in a better way thanks to the applications specially designed to run on the new Microsoft operating system. He said that the agreement would have a major impact on the entire digital content marketplace.

"As demand for digital content continues to increase, we are focused on bringing ground-breaking reading and learning content and technologies to more people in more formats than ever before, including the imminent launch of our exceptional NOOK reading application for Windows 8," said Lynch. "We look forward to working closely with our new partner Microsoft to add value to their innovative new platform by bringing great reading experiences and one of the world’s preeminent digital bookstores to millions of Windows 8 users."

Microsoft president Andy Lees was similarly enthusiastic about the announcement, saying that the new company represented the "next generation" of digital reading, and that the reach would be global.

The technology firm has been pouring funds into applications for mobile users. In September it was announced that Microsoft had invested an undisclosed amount of money in Mimvi in order to create new apps for its Windows Phone 8, set to be released in a few weeks. Mimvi will develop programs through the Microsoft's Window Azure public cloud. In the statement following the announcement, Microsoft's vice president for the Windows Phone program, Joe Belfiore said that the agreement would mean that there would be "bigger, more beautiful apps" as a result.