Microsoft, Barnes & Noble close partnership deal to create Nook Media spin-off

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The Microsoft-Barnes & Noble partnership has an official name: Nook Media.

Initially announced in April, the partnership comes with a $300 million investment from Microsoft, which will take a 17.6 percent ownership of the company.

For Microsoft, the deal will also result in a dedicated Nook app for Windows 8, which Barnes & Noble CEO William Lynch says is prepped for an “imminent launch.”

Barnes & Noble has in recent months expanded its Nook line to the U.K. Microsoft said during the initial announcement that it plans to contribute $25 million a year for five years to further this expansion.

While it’s possible that Nook Media could one day turn into its own company, Barnes & Noble is hesitant to promise that will happen. The Nook line, while a successful endeavor for the company, hasn’t exactly blown the eReader and tablet markets open. As a result, there’s no guarantee that Nook Media will go anywhere other than the expenses side of Barnes & Noble’s balance sheet.

VentureBeat/Ricardo Bilton