Barnes & Noble shares soar on Microsoft deal

The Nook maker's stock rose to $26 at open today, doubling its Friday closing price. Shares cooled off a bit as the morning moved along, but not by all that much.

Barnes & Noble

Barnes & Noble's shares are skyrocketing today following its announcement of a strategic partnership with Microsoft.

The company's stock soared in early trading to $26, nearly doubling last week's closing price of $13.68. Since then, investors have started to cool, though not by much: as of this writing, the company's shares are up 63 percent to $22.29.

Under the terms of their partnership, Microsoft and Barnes & Noble will own part of a new company, currently known as Newco until a final name can be determined. Microsoft gave Barnes & Noble $300 million for a 17.6 percent equity stake in Newco, leaving the remaining 82.4 percent ownership to the bookseller. Newco, according to the companies, will focus on Barnes & Noble's Nook digital and college businesses.

To sweeten the pot a bit for Microsoft, Barnes & Noble will include its Nook digital bookstore with Windows 8, the software giant's next-generation operating system that launches later this year. The companies have also agreed to end their bitter patent litigation by forming a "royalty-bearing license under Microsoft's patents for its Nook e-reader and Tablet products."

Despite excitement on the Barnes & Noble side, Microsoft's stock has hardly moved, rising only 2 cents to $32 per share.

 

Join the discussion

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET

HOT ON CNET

Find Your Tech Type

Take our tech personality quiz and enter for a chance to win* high-tech specs!