Moneycontrol
Apr 30, 2012 10:31 PM IST | Source: Reuters

Microsoft, Barnes & Noble team up

Microsoft Corp will invest USD 300 million in Barnes & Noble Inc's digital and college businesses, valuing them at USD 1.7 billion. Shares of Barnes & Noble jumped 79%


Microsoft Corp will invest USD 300 million in Barnes & Noble Inc's digital and college businesses, valuing them at USD 1.7 billion. Shares of Barnes & Noble jumped 79%.


Microsoft will get a 17.6% stake in the new unit, while Barnes & Noble will own about 82.4%, the companies said in a statement on Monday.


The business, whose name has not yet been decided, will have an ongoing relationship with Barnes & Noble's retail stores.


Barnes & Noble, the No. 1 US bookstore chain, said in January that it might spin off its digital business, which includes its Nook e-reader.


The companies will introduce an application for the Nook on Windows 8, the upcoming version of Microsoft's operating system.


Barnes & Noble is investing heavily to develop its popular Nook devices and the e-books sales they generate as readers move away from traditional books.


Barnes & Noble and Microsoft have settled their patent litigation, the companies said.


Shares of Barnes & Noble were up 79% at USD 24.50 in premarket trading. The company was valued at just above USD 823 million at Friday's close.

Microsoft shares rose 0.7% to USD 32.19.

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