Microsoft invests $300 million in Barnes & Noble

By on April 30, 2012 at 7:45 AM.

Microsoft invests $300 million in Barnes & Noble

Microsoft buys part of Barnes & Noble

Microsoft and Barnes & Noble on Monday announced the formation of a new partnership that will spin the bookseller’s digital Nook and College businesses into a new unnamed subsidiary. Microsoft’s investment of $300 million will bring it a 17% stake in the newly formed business, which is valued at $1.7 billion, and Barnes & Noble will own approximately 82.4% of the new company. “The formation of [this new subsidiary] and our relationship with Microsoft are important parts of our strategy to capitalize on the rapid growth of the NOOK business, and to solidify our position as a leader in the exploding market for digital content in the consumer and education segments,” said William Lynch, CEO of Barnes & Noble. “Microsoft’s investment in Newco, and our exciting collaboration to bring world-class digital reading technologies and content to the Windows platform and its hundreds of millions of users, will allow us to significantly expand the business.” Share of Barnes & Noble stock surged 80% in pre-market trading on the news. Barnes & Noble’s full press release follows below. More →

No Comments

Microsoft forms subsidiary to work on various open-source projects

By on April 12, 2012 at 6:50 PM.

Microsoft forms subsidiary to work on various open-source projects

Microsoft on Thursday formed a new subsidiary that will work with open-source projects, open-standards groups and interoperability initiatives. The subsidiary is called Microsoft Open Technologies Inc., and it will be formed from the company’s Interoperability Strategy team. Microsoft executive Jean Paoli will lead the new spin-off, which will consist of between 50 and 75 employees. In an interview with GeekWire, Paoli said Microsoft’s existing groups and divisions will continue to be involved with open-source projects, but at the same time the subsidiary will have the ability to work with outside projects at a faster pace. “We believe that the subsidiary will provide a new way of engaging with open-source communities in a more clearly defined manner,” he said, adding that the effort is about “bridging Microsoft and non-Microsoft technologies.” Microsoft Open Technologies will be a wholly owned subsidiary of Microsoft and will feature a board of directors that includes executives from the company’s business groups. More →

No Comments