Microsoft announced partnership with Barnes and Noble back in 2012 and even created a new joint venture company called Nook Media LLC by investing $300 million. Since then, the only thing that came of out partnership was Barnes & Noble’s Windows 8 app. In an recent interview to GeekWire, Barnes & Noble CEO Mike Huseby said that they are in a very, very good relationship with Microsoft despite the recent partnership with Samsung. B&N is in contact with Microsoft on an ongoing basis about things that they doing together.
Today, Microsoft and Barnes & Noble has announced that they are terminating their commercial agreement and Microsoft will be getting back their investment of $300 million.
The Company filed a Form 8-K with the Securities and Exchange Commission stating that Barnes & Noble and Microsoft have agreed to terminate their commercial agreement including any associated obligations for international content acquisition and sale. Such termination will allow the Company to continue its rationalization of the NOOK Digital business and enhances Barnes & Noble’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.
Additionally, the Company stated that it had entered into an agreement with Microsoft to acquire its entire preferred interest in NOOK Media, LLC.
From their SEC filing,
SECTION 1.01. Purchase and Sale of the Series A Preferred Interests . On the terms and subject to the conditions set forth in this Agreement, at the Closing, NMI shall purchase from the Investor all of the Investor’s right, title and interest in, to and under the Series A Preferred Interests for an aggregate purchase price equal to (a) $62,425,006.63 in cash, payable as set forth in Section 1.02(b), and (b) 2,737,290 shares (the “ Common Shares ”) of common stock, par value $.001 per share (“ Company Common Stock ”), of the Company. The purchase and sale of the Series A Preferred Interests is referred to in this Agreement as the “ Preferred Interest Purchase ”.
Read the whole filing here.