B&N, Microsoft Form Nook Alliance
Barnes & Noble and Microsoft Monday announced a "strategic alliance," meant to "accelerate the transition to e-reading," and a possible prelude to a spinoff.
The partnership entails the creation of a new subsidiary of Barnes & Noble, consisting of its digital and college businesses, in which Microsoft will invest $300 million. The deal also includes a Nook application for the upcoming Windows 8, and the two parties have also agreed to settle outstanding patent litigation.
The new division is temporarily called "Newco."