Barnes & Noble and Microsoft have finalized the strategic partnership that they first announced in April. The new subsidiary, called Nook Media, comprises Barnes & Noble’s Nook and college businesses. As previously announced, Microsoft is investing $300 million in Nook Media and will hold a 17.6 percent stake in the new company, with Barnes & Noble owning the remaining shares.
The partnership means more ebooks and a Nook app for Windows 8. “We look forward to working closely with our new partner Microsoft to add value to their innovative new platform by bringing great reading experiences and one of the world’s preeminent digital bookstores to millions of Windows 8 users,” Barnes & Noble CEO William Lynch said in a statement.
The partnership will also focus on international expansion. Barnes & Noble is launching the Nook in the UK for the first time this fall, and Microsoft president Andy Lees said Microsoft is “excited by Nook Media’s product roadmap and expansion into markets around the world as demonstrated by their recent launches in the United Kingdom.” Microsoft will pay Nook Media $25 million a year for the first five years to assist with the development of local-language reading content and technology.