Barnes & Noble and Microsoft call off their Nook partnership


In the middle of yet another disappointing earnings report Thursday, Barnes & Noble announced that it’s terminating the strategic partnership it formed with Microsoft in 2012. That partnership had combined Barnes & Noble’s Nook and college businesses into a division called Nook Media, into which Microsoft invested $300 million.

According to the company:

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.

Barnes & Noble is also buying out Microsoft’s stake in Nook Media.

When the partnership was formed in 2012, the idea was that [company]Microsoft[/company] would help finance Nook’s international expansion and that Nook apps and content would be loaded onto Windows devices, thus ridding Microsoft of…

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