Microsoft and Barnes & Noble have formed a strategic partnership. Microsoft will invest $300 million to create Newco, a new Barnes & Noble subsidiary that will manage Barnes & Noble’s e-book and education business.
Microsoft is currently developing a Nook app for Word, and will also support the bookseller’s Nook Study educational software.
Only recently, these two companies were embroiled in a legal conflict. Microsoft claimed that the Nook Color’s operating system for Android violated its patents and sued Barnes & Noble. This conflict has since been settled.