Back in 2012, Microsoft paid $300 million for a 17.6% stake in Barnes and Noble’s Nook business but today, that partnership comes to an end. The deal, which did not amount to much of anything for either company, ends with Barnes & Noble buying back its stake for $62,425,006.63 in cash and 2,737,290 shares of common stock according to an SEC filing.
When the deal was announced, many thought it was a way for Microsoft to enter the e-book business and to get these apps on to its many platforms. But the arrangement never turned into anything of significance for either company and it ends up hurting Microsoft’s pocketbook.
Barnes and Noble said the following in the SEC filling as the reason of the split:
Such termination will allow the Company to continue its rationalization of the NOOK Digital business and enhances the Company’s operational and strategic flexibility. The termination also relieves Microsoft of any obligation to continue to fund support and other payments set forth in the Commercial Agreement between the partners.
Republished with permission from Neowin. Read full article.
