Barnes and Noble shares rocket on Microsoft rumours

The share price of bookstore chain Barnes and Noble jumped more than 20 per cent in trading yesterday (May 9th) on the back of rumours linking the firm with technology giant Microsoft.

Barnes and Noble has an e-reader division featuring its Nook device and it has been reported that Microsoft is planning to buy all Nook Media's assets for $1 billion (£650 million).

This led to a rise of around 24 per cent in the share price of the firm in trading yesterday, even though Microsoft and Barnes and Noble have not yet commented on any potential deal.

Microsoft already owns 17 per cent of Nook Media, while about five per cent is owned by Pearson and around three-quarters by Barnes and Noble.

It would be a major deal for Microsoft if it goes through and could result in the Nook becoming a massive rival for the Kindle e-reader, which is sold by Amazon.

When the New York Stock Exchange opens later in the day, shares in Barnes and Noble will begin selling for 22.08.

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