- By Karin Hernandez:On Monday, April 30, Microsoft (MSFT), the world's leading software company, announced a $300 million joint partnership with Barnes & Noble (NYSE: BKS), much to the surprise of the market and the utter delight of Barnes & Noble shareholders, who promptly saw a better than 60% gain in their holdings.
US computer giant Microsoft will make a $300 million investment in a new Barnes & Noble subsidiary to combine the bookseller's digital reading capabilities, including its Nook tablet, and its college businesses.The investment will give Microsoft a 17.6% stake in the as-yet unnamed unit that "will accelerate the transition to e-reading, which is revolutionizing the way people consume, create, share and enjoy digital content," the companies said in a statement.
Barnes and Noble has abandoned its technology joint venture with Microsoft, and is buying back all shares in the joint venture for $62 million in cash and Barnes & Noble stock worth about $54 million, according to a new SEC filing.
By Robert Broens: Shares of Barnes & Noble (BKS) rose 52% today to $20.75 per share after trading as high as $26 per share earlier. The spike comes after the company announced a strategic partnership with Microsoft (MSFT) which will invest $300 million in the company's Nook.