Barnes & Noble and Microsoft have formed a strategic partnership to create an new BN subsidiary building on the history of digital reading technology development of both companies. The subsidiary, which will include the BN Nook Digital and College businesses, will get a $300 million investment from Microsoft at a post-money valuation of $1.7 billion in exchange for a 17.6% equity stake. BN will own 82.4% of the subsidiary, which will have an ongoing relationship with the company’s retail stores. One of its first projects will be a NOOK application for Windows 8. more
