Microsoft invests in new Barnes & Noble unit, settles litigation
But whether the new subsidiary will become a stand-alone public company hasn't been decided
IDG News Service - Microsoft will invest $300 million in a new Barnes & Noble subsidiary, which will include the digital Nook and College businesses of Barnes & Noble, the companies said in joint statement on Monday.
The formation of the new subsidiary and the relationship with Microsoft are important parts of Barnes & Noble's strategy to try to capitalize on the growth of the Nook business, it said.
The investment will give Microsoft a 17.6% equity stake, which values the unnamed subsidiary at $1.7 billion, according to the statement. Barnes & Noble will own the rest of the unit, which will still work with the company's retail stores, it said.
As part of the deal, Barnes & Noble and Microsoft have also settled their patent litigation, and moving forward, Barnes & Noble and the new subsidiary will pay Microsoft royalties for its Nook e-reader and tablet products.
Microsoft filed legal action against Barnes & Noble in March last year.
Barnes & Noble now intends to explore all alternatives for how a strategic separation of the subsidiary may occur, but there is no set timetable for when the review will be finished, it said.
One of the first results for users will be a Nook application for Windows 8. The app will extend the reach of Barnes & Noble's digital bookstore to devices based on Microsoft's upcoming Windows operating system, which will be used on both PCs and tablets. There is no date for when the application will arrive.
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- OpenStack Hype vs. Reality: CIO Quick Pulse Open-source architecture can enable IT departments to build infrastructure-as-a-service (IaaS) clouds running on standard hardware.
- The Critical Role of Support in Your Enterprise Mobility Management Strategy Most business leaders underestimate the importance of tech support when they choose an EMM solution. Here's what to put on your checklist.
- Separating Work and Personal at the Platform Level: How BlackBerry Balance Works BlackBerry® Balance™ separates work from personal on the same mobile device, right at a platform level. Find out how it can work for...
- Protection for Every Enterprise: How BlackBerry Security Works Get an IT-level review of BlackBerry® Security, addressing data leakage protection, certified encryption, containerization and much more.
- Live Webcast On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Workforce Mobilization for Improved Productivity A mobility research director from Aberdeen discusses reasons for extending legacy applications to mobile devices, and an integration strategist from Attachmate shows how...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of... All Mobile/Wireless White Papers | Webcasts
As emerging technologies evolve they often find an initial niche in highly specialized scenarios, or in specific industry verticals, before expanding to wider areas of applicability. Within these initial niches, the early adopters can be anything from digital enthusiasts to fashionistas, or they can be folks simply using the technology because it serves a specific need extremely well. (free registration required) more