REDMOND (dpa-AFX) - Barnes & Noble Inc. (BKS) and Microsoft (MSFT) announced the creation of a strategic partnership in a new Barnes & Noble subsidiary, which will build upon the history of strong innovation in digital reading technologies from both companies. Barnes & Noble has not yet decided on the name of the newly formed subsidiary.
The newly formed unit would include NOOK Digital and College Businesses. It would bring together the digital and College businesses of Barnes & Noble. Microsoft will make a $300 million investment in the newly formed subsidiary at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake. Barnes & Noble will own approximately 82.4% of the new subsidiary, which will have an ongoing relationship with the company's retail stores.
Through the newly formed unit, Barnes & Noble's NOOK Study software will provide students and educators the preeminent technology platform for the distribution and management of digital education materials in the market.
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