Barnes & Noble and Microsoft Finalize Partnership – Nook Media Lives

It's been just over 5 months since B&N and Microsoft shocked the digital publishing world with their new partnership, and they are back again today with news that the deal has been finalized. The jointly owned subsidiary, which had previously been called Newco, is now going to officially be named Nook Media. (Boring name, isn't it? I would have stuck with Newco.)

The new sub is going to incorporate B&N's Nook and College divisions, with B&N maintaining a majority control of the company. Microsoft will own about an 18% share and under the contract signed with B&N, MS will also contribute around $600 million to fund Nook Media.

And so B&n now formally owns a subsidiary with a greater value on paper than B&N's own market capitalization ($1.7 billion vs $800 million). If you think that sounds crazy, it is.

About Nate Hoffelder (11393 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader: "I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

2 Comments on Barnes & Noble and Microsoft Finalize Partnership – Nook Media Lives

  1. OTOH, Len Riggio now has a lifeboat for his dotage.

  2. Next step: an IPO of 31% of Nook Media stock.
    Should be good for at least another $500M.

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