In what might be seen as an attempt for the company to work with Barnes & Noble to take on e-book giants Amazon and Apple, (while also serving a purpose for its home crowd), Microsoft earlier today announced that it will plough a staggering $300 Million into building a Barnes & Noble subsidiary.
The yet-to-be-named Microsoft-led branch off will reportedly work with Barnes & Noble encompassing all business surrounding the Nook, with the intention to “extend the reach of Barnes & Noble’s digital bookstore by providing one of the world’s largest digital catalogues of e-Books, magazines and newspapers to hundreds of millions of Windows customers in the U.S. and internationally.”
Providing a post-money valuation of $1.7 Billion, Microsoft’s new subsidiary will reportedly earn the company 17.6% equity stake in Barnes & Noble, leaving 82.4% equity for the firm itself in regards to the new subsidiary – (referred to as “Newco” for the purpose of the report).
Barnes & Noble will own approximately 82.4% of the new subsidiary, which will have an ongoing relationship with the company’s retail stores.
Barnes & Noble is reportedly yet to decide on the name of “Newco.”