Barnes & Noble, Inc. And Microsoft Form Strategic Partnership To Advance World-Class Digital Reading Experiences For Consumers

Barnes & Noble, Inc. and Microsoft announced the formation of a strategic partnership in a new Barnes & Noble subsidiary. The partnership will accelerate the transition to e-reading, which is revolutionizing the way people consume, create, share and enjoy digital content. The new subsidiary, referred to in this release as Newco, will bring together the digital and College businesses of Barnes & Noble. Microsoft will make a $300 million investment in Newco at a post-money valuation of $1.7 billion in exchange for an approximately 17.6% equity stake. 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 has not yet decided on the name of Newco.