Confirming its recent announcement about the possible Nook business spinoff, Barnes & Noble has entered a strategic partnership with Microsoft in a new Barnes & Noble subsidiary, focused on ebooks.
The new company, which will marry B&N's digital and college businesses, doesn't have a name yet.
Under the terms of the agreement, Microsoft will invest $300 million at a $1.7 billion valuation. B&N will own approximately 82.4% of the new subsidiary.
Customers will soon see benefits from the partnership in the form of a Nook application for Windows 8. Of course, users of other Windows devices will benefit as well.
“Our complementary assets will accelerate e-reading innovation across a broad range of Windows devices, enabling people to not just read stories, but to be part of them,” said Andy Lees, President at Microsoft.