Shares of Barnes and Noble (BKS) skyrocketed today on news that Microsoft (MSFT) will invest $300 million in a new subsidiary Barnes and Noble is forming to market and distribute its Nook tablet. Microsoft will also develop software for the Nook, even though it is an Android tablet. Microsoft will own 17% of the new Nook subsidiary, which has yet to be named.
So far, the Nook has been cornered by Apple’s iPad and Amazon’s Kindle, both of which are much bigger sellers. The Nook has also been plagued by Wi-Fi connection issues, which the company says are now fixed.
Barnes and Noble has also been engaged in a patent lawsuit against Microsoft, but the two companies now say they are abandoning that lawsuit as part of today’s deal.
Follow me on Twitter.
