NEW YORK (TheStreet) -- Microsoft (MSFT) will stop offering Barnes and Noble's (BKS) Nook software on Windows systems. According to SEC filings, the two companies will instead work together on transitioning Nook users over to Microsoft's nascent Consumer Reader app.
Microsoft and Barnes and Noble have had a close relationship since Microsoft invested $300 million in the company in 2012. Barnes and Nobles is the worlds largest book dealer and is planning to launch a color version its Nook e-readers and tablets later this year.
While this is a minor hiccup in the relationship between the two companies, falling sales of the Nook are reason for concern. Microsoft's Consumer Reader app will replace the Nook Windows app but it is unclear what function it will have as it has not been revealed to the public yet. The two companies have also updated their revenue sharing agreement, though the terms of that agreement have not been made public either.
Microsoft was down 1.2% in late afternoon trading to $37.82, While Barnes and Noble's stock was down 0.6% to $21.50.
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