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.
B&N puts special emphasis on the educational element of the partnership. “The Nook Study software will provide students and educators the preeminent technology platform for the distribution and management of digital education materials in the market,” says B&N in the announcement.