Newco is the Barnes & Noble subsidiary created to hold the Nook e‑reader platform and other digital businesses. The company’s core product is the Nook app and related digital reading content and technology. Microsoft agreed to invest $300 million for a 17.6% stake in Newco and to support the business commercially. In addition to the equity investment Microsoft will pay $180 million in connection with revenue sharing on a Windows 8 Nook app and $125 million (structured as $25M over five years) to help acquire local digital content and fund technology development; both payments are described as nonrefundable. The 8‑K notes these payments are on top of the $300M investment and become effective once the investment closes. The filing provides limited detail on revenue‑share terms and product roadmaps, though executives signaled possible Windows 8 integrations and international expansion opportunities.

Total raised

$300M

Funding rounds

1

Latest round

Equity

Latest activity

Apr 2012