Microsoft Buys Stake In Barnes & Noble’s Digital Business, Investing $300 Million Into It

Posted on Apr 30 2012 - 12:31pm by Karan Chopra

Microsoft and Barnes & Noble this morning announced the formation of a strategic partnership in a new Barnes & Noble subsidiary. The partnership will accelerate the transition to e-reading, referred to in this release as Newco, will bring together the digital and College businesses of Barnes & Noble. Microsoft will make a $300 million investment in Newco 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. Barnes & Noble has not yet decided on the name of Newco.

The benefit will be a NOOK application for Windows 8, which will extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers in the U.S. and internationally. According to the company, the inclusion of Barnes & Noble’s College business is an important component of Newco’s strategic vision. Through the newly formed Newco, Barnes & Noble’s industry leading NOOK Study software will provide students and educators the preeminent technology platform for the distribution and management of digital education materials in the market.

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Karan Chopra, CEO at G2One Network An Internet Media Company), Founder at 99DollarWebsite and Editor/Writer at I2Mag, JustWP.org, CodeAndMe.net, TechEXplained.org, JustInfo.Graphics, HowToWebDesign.org, NextBigProduct and WPLove.co. Karan is an internet enthusiast, who loves to explore every second thing in both technology and business. You can find him on Facebook , Twitter and Google+.