Microsoft will invest $300 million in a new subsidiary
that combines Barnes & Noble's Nook digital reader and
college businesses.
The new subsidiary will bring together the digital and
College businesses of Barnes & Noble. Microsoft will
make a $300 million investment in the new subsidiary at
a post-money valuation of $1.7 billion in exchange for
an approximately 17.6% equity stake. Barnes & Noble will
own approximately 82.4% of the new subsidiary, which
will have an ongoing relationship with the company's
retail stores.
The companies will initially release a NOOK application
for Windows 8, which will extend the reach of Barnes &
Noble's digital bookstore by providing its digital
catalogues to Windows customers.
Through the newly formed company, Barnes & Noble's NOOK
Study software will also provide students and educators
the technology platform for the distribution and
management of digital education materials in the market.
Barnes & Noble has also settled its patent litigation
with Microsoft and the new unit will have a
royalty-bearing license.