Barnes & Noble, Microsoft ink strategic

Barnes & Noble and Microsoft at one time couldn\'t get along. Now, they\'re partners. The companies announced today that Microsoft has invested $300 million into a new Barnes & Noble subsidiary, known as Newco until the company can come up with a name. The $300 million investment will give Microsoft 17.6 percent equity stake in the firm. Barnes & Noble, which assumed a $1.7 billion valuation on the subsidiary, will retain 82.4 percent ownership. Newco will combine Barnes & Noble\'s digital and College businesses, meaning the retailer\'s Nook operation and its Nook Study software for students and educators will be a part of the operation. As part of this deal, Barnes & Noble will bundle its Nook digital bookstore with Windows 8 when it launches later this year. In addition, the companies have settled all of their patent litigation related to use of the Android platform on the Nook tablet, and have formed a \"royalty-bearing license under Microsoft\'s patents for its Nook e-reader and Tablet products.\"