Microsoft invests $300 million in new Barnes & Noble ‘strategic partnership’

Microsoft invests $300 million in new Barnes & Noble 'strategic partnership'

Properly, that is an fascinating finish to all these authorized tussles. Microsoft and bookseller Barnes and Noble have determined to buddy-up within the face of rivals like Amazon and Apple. The strategic partnership — Microsoft loves ‘em — would come within the type of a brand new Barnes and Noble subsidiary that offers with all issues Nook, along with its schooling enterprise. The bookseller would maintain onto the lion’s share at eighty two.four %, with the remaining 17.6 % in Microsoft’s management. The primary profit posited can be a Nook app for the incoming Home windows eight. Barnes and Noble’s Nook Research software program would additionally profit from a pleasant increase on all that Home windows hardware. Perhaps all these different authorized matches will resolve in comparable heat-and-fuzzy enterprise hook-ups — however we doubt it.

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Barnes & Noble and Microsoft Type Strategic Partnership to Advance World-Class Digital Studying Experiences for Shoppers

New York, NY and Redmond, WA (April 30, 2012) – Barnes & Noble Inc. (NYSE: BKS) and Microsoft (NASDAQ: MSFT) right now introduced the formation of a strategic partnership in a brand new Barnes & Noble subsidiary, which can construct upon the historical past of robust innovation in digital studying applied sciences from each corporations. The partnership will speed up the transition to e-studying, which is revolutionizing the best way individuals eat, create, share and luxuriate in digital content material.

The brand new subsidiary, referred to on this launch as Newco, will deliver collectively the digital and School companies of Barnes & Noble. Microsoft will make a $300 million funding in Newco at a submit-cash valuation of $1.7 billion in trade for an roughly 17.6% fairness stake. Barnes & Noble will personal roughly eighty two.four% of the brand new subsidiary, which could have an ongoing relationship with the corporate’s retail shops. Barnes & Noble has not but selected the identify of Newco.

One of many first advantages for patrons might be a NOOK software for Home windows eight, which can prolong the attain of Barnes & Noble’s digital bookstore by offering one of many world’s largest digital catalogues of e-Books, magazines and newspapers to a whole lot of hundreds of thousands of Home windows clients within the U.S. and internationally.

The inclusion of Barnes & Noble’s School enterprise is a vital element of Newco’s strategic imaginative and prescient. By way of the newly shaped Newco, Barnes & Noble’s business main NOOK Research software program will present college students and educators the preeminent know-how platform for the distribution and administration of digital schooling supplies out there.

“The formation of Newco and our relationship with Microsoft are essential elements of our technique to capitalize on the speedy progress of the NOOK enterprise, and to solidify our place as a pacesetter within the exploding marketplace for digital content material within the shopper and schooling segments,” stated William Lynch, CEO of Barnes & Noble. “Microsoft’s funding in Newco, and our thrilling collaboration to deliver world-class digital studying applied sciences and content material to the Home windows platform and its tons of of tens of millions of customers, will permit us to considerably increase the enterprise.”

“The shift to digital is placing the world’s libraries and newsstands within the palm of each individual’s hand, and is the start of a journey that may influence how individuals learn, work together with, and luxuriate in new types of content material,” stated Andy Lees, President at Microsoft. “Our complementary belongings will speed up e-studying innovation throughout a broad vary of Home windows units, enabling individuals to not simply learn tales, however to be a part of them. We’re on the cusp of a revolution in studying.”

Barnes & Noble and Microsoft have settled their patent litigation, and shifting ahead, Barnes & Noble and Newco could have a royalty-bearing license underneath Microsoft’s patents for its NOOK eReader and Pill merchandise. This paves the best way for each corporations to collaborate and attain a broader set of consumers.


On January 5, Barnes & Noble introduced that it was exploring the strategic separation of its digital enterprise to be able to maximize shareholder worth. Barnes & Noble is actively engaged within the formation of Newco, which can embrace Barnes & Noble’s digital and School companies. The corporate intends to discover all options for a way a strategic separation of Newco might happen. There may be no assurance that the assessment will end in a strategic separation or the creation of a stand-alone public firm, and there’s no set timetable for this evaluation. Barnes & Noble doesn’t intend to remark additional relating to the evaluation until and till a choice is made.

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