B&N, Microsoft Complete Nook Deal
Barnes & Noble and Microsoft today announced finalizing the strategic partnership announced in April. The newly created subsidiary—Nook Media—encompasses Barnes & Noble’s Nook and college businesses. Under the agreement, Microsoft is investing $300 million in the entity and will hold a 17.6% stake in Nook Media, with Barnes & Noble owning the balance of equity.
The bookseller is launching a Nook app for Windows 8, and Microsoft will roll out its Windows 8 tablets on Oct. 26. “We look forward to working closely with our new partner Microsoft to add value to their innovative new platform by bringing great reading experiences and one of the world’s preeminent digital bookstores to millions of Windows 8 users,” said Barnes & Noble CEO William Lynch, in a statement.
The company most recently introduced the Nook HD and Nook HD+ tablets as well as a Nook video service to compete with the likes of Amazon Instant Video and iTunes. Barnes & Noble also kicks off its international expansion of Nook e-readers this month through previously announced partnerships with U.K.-based retailers including John Lewis, Argos and Foyles.
Despite rumors that the Nook business could be spun out as a separate public company, Barnes & Noble said in its announcement today that its strategic review of options “will result in a strategic separation or the creation of a stand-alone public company.”