Microsoft’s Investment in Nook Really Totals $605 Million Over Five Years
Reading the fine print of the agreement between Microsoft and Barnes & Noble, the Wall Street Journal has determined that Microsoft is, in fact, investing $605 million in the Nook business over the next five years (Microsoft to Invest in Barnes & Noble’s Nook):
Microsoft Corp. is investing at least $605 million in Barnes & Noble Inc.’s Nook digital-book business, as the software giant pushes deeper into the e-books business and props up a rival to the iPad and Amazon’s Kindle.
In addition to a $300 million investment Microsoft announced Monday in the new subsidiary, Microsoft also pledged to dole out $180 million—or $60 million a year for three years—to the subsidiary in the form of revenue-sharing guarantees, according to a copy of the contract filed Monday with the Securities and Exchange Commission.
Microsoft also pledged $25 million a year over five years, or $125 million, to assist in NewCo’s planned international expansion, according to the companies’ contract. The agreement says the money is earmarked to assist the Barnes & Noble business “in acquiring local reading content and technology development.”
Read much more at WSJ.com.