Microsoft, Barnes & Noble Complete Partnership Deal

Before you go, we thought you'd like these...
Before you go close icon

Microsoft Corp. (NASDAQ: MSFT) and Barnes & Noble Inc. (NYSE: BKS) announced a joint venture in April that would build on the two partners' innovations in e-readers. Today the deal was finalized and the resulting company, called Nook Media LLC, was born. Microsoft paid $300 million for a 17.6% stake in the new company and B&N owns the rest.

Nook Media will operate as a subsidiary of B&N, and the company was quick to point out that it has no timetable for a review of strategic options, including a spin-off or the creation of a standalone company.

To begin with, Nook Media will focus on its fall launch of the Nook e-reader in the U.K. The company is expected to focus on international markets, and Microsoft has agreed to pay $25 million a year for five years to help develop local-language content and technology for Nook Media.

When the joint venture was first announced, B&N's stock doubled to $26 share. The stock is trading up about 4.3% today at $13.24 in a 52-week range of $9.35 to $26.00. How quickly investors forget.

Paul Ausick


Filed under: 24/7 Wall St. Wire, Consumer Electronics, Retail, Software Tagged: BKS, MSFT
Read Full Story

Markets

S&P 500 2,263.69 -8.20 -0.36%
DJIA 19,732.40 -72.32 -0.37%
NASDAQ 5,540.08 -15.57 -0.28%
DAX 11,596.89 -2.50 -0.02%
HANG SENG 22,906.42 -143.54 -0.62%
NIKKEI 225 19,091.84 19.59 0.10%
USD (per EUR) 1.07 0.00 0.27%
USD (per CHF) 1.00 0.00 -0.21%
JPY (per USD) 114.63 -0.35 -0.30%
GBP (per USD) 1.24 0.00 0.26%

From Our Partners