Microsoft and Barnes & Noble are no longer in business together, after the PC giant sold back its stake in Nook Media for just over $100 million.
Revealed in the booksellers' earnings report, the 300 million deal made in 2012 has now been terminated, with Microsoft selling its stake back for a total of around $123 million in cash and stock.
In the report, the company said: "Barnes & Noble and Microsoft have agreed to terminate their commercial agreement including any associated obligations for international content acquisition and sale. Such termination will allow the company to continue its rationalisation of the NOOK digital business and enhances Barnes & Noble's operational and strategic flexibility.
"The termination also relieves Microsoft of any obligation to continue to fund support and other payments set forth in the commercial agreement between the partners."
In other words, Microsoft is out and now Barnes & Noble has more flexibility to spin-off its Nook business something it might do "by the end of August 2015."
During 2014's second quarter, revenue amounted to $64 million, which is a drop of 41.3 per cent compared to a year before, reports Forbes. Devices have been doing even worse, with sales of the Nook tablets down 63 per cent year-on-year and digital content seeing a similarly large drop of 21 per cent compared to 2013.
Shares of Barnes & Noble have reportedly fallen 10 per cent since the announcement of Microsoft's exit and the reveal of its second quarter fiscal 2015 earnings results.
"Today's announcement on the restructuring of the Nook Media agreements will enable the company to further rationalise the Nook business and provide a clearer path for the potential separation of our retail and Nook Media businesses," CEO Michael Huseby said in a statement.
