Microsoft teams up with Barnes & Noble to enter the ebook arena

Microsoft has invested a cool US$300 million in a partnership with book seller Barnes & Noble – setting the stage for a three way fight between Amazon and Apple.

The first fruits of this joint venture will emerge in the form of Barnes and Noble's Nook app hitting Windows 8 after its expected release in October. It'll compete directly with Amazon's Kindle app by pushing ebooks, newspapers and magazines to consumers.

The new venture between Microsoft and Barnes & Noble also has its sights set on the education market – aiming to muscle in on Apple's iTunes U by providing teachers and students with digital content and tools alongside the Nook's study software.

Time will tell how Apple and Amazon will respond, but it looks like the ebook wars could turn into a real page turner. Sorry.