The latest mergers & acquisitions rumor buzzing around the internet is that Microsoft is about to dump an additional billion bucks into Barnes & Nobles' embattled eReader, the Nook. This isn't particularly surprising, since Microsoft already has $300 million or so invested in Nook, and rather than watch it all slide down the tube, it's doubling down and hoping and praying that somehow, someday, its not inconsiderable investment will pay off.

Frankly, we have difficulty seeing how. Unless, God forbid, Microsoft is prepared to go head-to-head with that internet juggernaut of a retailer, Amazon, and to a lesser extent, Apple. And then, there's Google, looming on the horizon.

Here's why. (more…)