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.

Nate Hoffelder

View posts by Nate Hoffelder
Nate Hoffelder is the founder and editor of The Digital Reader: He's here to chew bubble gum and fix broken websites, and he is all out of bubble gum. He has been blogging about indie authors since 2010 while learning new tech skills at the drop of a hat. He fixes author sites, and shares what he learns on The Digital Reader's blog. In his spare time, he fosters dogs for A Forever Home, a local rescue group.

2 Comments

  1. Mike Cane4 October, 2012

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

    Reply
  2. fjtorres4 October, 2012

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

    Reply

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