New York - Microsoft has invested $300 million in a new Barnes & Noble subsidiary that will merge the booksellers digital and college business into one entity.
The newly minted subsidiary, which is not officially named but carries the moniker Newco, will be majority owned by Barnes & Noble with Microsoft obtaining a 17.6 percent stake for its investment.
The company began exploring the possibility of spinning off its
business in January. Barnes & Noble has not decided whether it will fully spin off Newco as a stand-alone company.
One of the primary benefits for Barnes & Noble will be a Nook app for Windows 8 devices, the company said.
"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," said Barnes & Noble CEO William Lynch.