Barnes & Noble Inc. and Microsoft Corp. this week announced a new partnership for a Barnes & Noble subsidiary focused on e-book technologies.
Under the agreement, Microsoft will invest $300 million for a 17.6 percent equity stake in the new company. Barnes & Noble will hold the remaining 82.4 percent share.
In addition, Barnes & Noble’s Nook application will be available for Windows 8 to allow the digital bookstore to be available to all Windows customers.
Finally, the new subsidiary will utilize the Nook Study software for digital distribution of digital education materials.
“The formation of Newco and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the Nook business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments,” said William Lynch, CEO of Barnes & Noble.
“Microsoft’s investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business.”
Barnes & Noble in Nov. began sale of the Nook Tablet, a 7-inch tablet that includes e-book and computing functionality.
The new company is expected to compete with Amazon.com Inc.’s Kindle Fire, which began sale in late 2011.