The deal between Barnes & Noble and Microsoft gives both companies things they need—B&N receives a much-needed infusion of cash, while Microsoft gets another chance to participate in the consumer digital marketplace. In addition to the $300 million investment Microsoft has made to give it a 17.6% stake in Newco (the temporary name for the new subsidiary created by this partnership), the company will pay $60 million annually for three years as an advance against sales plus $25 million annually for five years to help expand Newco’s international operations, making for a total five-year investment of $605 million.
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