Microsoft invests in new Barnes & Noble unit, settles litigation

But whether the new subsidiary will become a stand-alone public company hasn't been decided

Microsoft will invest US$300 million in a new Barnes & Noble subsidiary, which will include the digital Nook and College businesses of Barnes & Noble, the companies said in joint statement on Monday.

The formation of the new subsidiary and the relationship with Microsoft are important parts of Barnes & Noble's strategy to try to capitalize on the growth of the Nook business, it said.

The investment will give Microsoft a 17.6 percent equity stake, which values the unnamed subsidiary at $1.7 billion, according to the statement. Barnes & Noble will own the rest of the unit, which will still work with the company's retail stores, it said.

As part of the deal, Barnes & Noble and Microsoft have also settled their patent litigation, and moving forward, Barnes & Noble and the new subsidiary will pay Microsoft royalties for its Nook e-reader and tablet products.

Microsoft filed legal action against Barnes & Noble in March last year.

Barnes & Noble now intends to explore all alternatives for how a strategic separation of the subsidiary may occur, but there is no set timetable for when the review will be finished, it said.

One of the first results for users will be a Nook application for Windows 8. The app will extend the reach of Barnes & Noble's digital bookstore to devices based on Microsoft's upcoming Windows operating system, which will be used on both PCs and tablets. There is no date for when the application will arrive.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?