Barnes & Noble stock soars on Microsoft Nook stake
* Microsoft to invest in B&N's digital, college units
* Deal values businesses at $1.7 bln
* Microsoft will own 17.6 pct of new business
* Barnes & Noble shares up 79 pct; Microsoft up 0.7 pct
(Adds details, bullet points)
April 30 (Reuters) - Microsoft Corp (MSFT.O) will invest $300 million in Barnes & Noble Inc's (BKS.N) digital and college businesses, valuing them at $1.7 billion. Shares of Barnes & Noble jumped 79 percent.
Microsoft will get a 17.6 percent stake in the new unit, while Barnes & Noble will own about 82.4 percent, the companies said in a statement on Monday.
The business, whose name has not yet been decided, will have an ongoing relationship with Barnes & Noble's retail stores.
Barnes & Noble, the No. 1 U.S. bookstore chain, said in January that it might spin off its digital business, which includes its Nook e-reader. [ID:nL1E80401F] The companies will introduce an application for the Nook on Windows 8, t he upcoming version of Microsoft's operating system.
Barnes & Noble is investing heavily to develop its popular Nook devices and the e-books sales they generate as readers move away from traditional books.
Barnes & Noble and Microsoft have settled their patent litigation, the companies said.
Shares of Barnes & Noble were up 79 percent at $24.50 in premarket trading. The company was valued at just above $823 million at Friday's close.
Microsoft shares rose 0.7 percent to $32.19.
(Reporting by Mihir Dalal in Bangalore; Editing by Joyjeet Das)
((email@example.com; phone: 646 223 8780; outside U.S. +91 80 4135 5800) (follow me on twitter @MihirDTweets)) Keywords: BARNESNOBLE MICROSOFT/
(C) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
- Tweet this
- Share this
- Digg this
- Microsoft sees end to Nokia losses, shares rise after hours
- Train carrying MH17 bodies on final journey reaches Ukraine city |
- Euro finally gives in, Aussie eyes CPI test
- Abbas-led Palestinian body backs Hamas truce demands in Gaza |
- MPs criticise UK arms sales to Russia as Cameron pledges no new exports