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.