Microsoft And Barnes & Noble Complete Partnership In NOOK Media; No Decision Yet On Spinoff

As we discussed previously,  Microsoft(MSFT) had agreed to invest $300 million for a 17.6% stake in NOOK Media,

English: Barnes & Noble Nook

which includes the digital and College assets of Barnes & Noble(BKS) including the NOOK device business.  Barnes & Noble continues to own the remainder of the business.

In today’s release, the company was careful to note that “As previously announced, there is no set timetable for Barnes & Noble’s review of strategic options for its investment in NOOK Media LLC. There can be no assurance that the review will result in a strategic separation or the creation of a stand-alone public company. Barnes & Noble does not intend to comment further regarding the review unless and until a decision is made. ”

However, we view the company’s repeated mention of the possibility of a stand-alone public company, together with the involvement of John Malone and his Liberty companies, as a strong indication that the division will be spun when market conditions are favorable.

Disclosure: The author holds no position in any stock mentioned

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