Microsoft Corp. (NASDAQ: MSFT) and Barnes & Noble Inc. (NYSE: BKS) announced a joint venture in April that would build on the two partners’ innovations in e-readers. Today the deal was finalized and the resulting company, called Nook Media LLC, was born. Microsoft paid $300 million for a 17.6% stake in the new company and B&N owns the rest.

Nook Media will operate as a subsidiary of B&N, and the company was quick to point out that it has no timetable for a review of strategic options, including a spin-off or the creation of a standalone company.

To begin with, Nook Media will focus on its fall launch of the Nook e-reader in the U.K. The company is expected to focus on international markets, and Microsoft has agreed to pay $25 million a year for five years to help develop local-language content and technology for Nook Media.

When the joint venture was first announced, B&N’s stock doubled to $26 share. The stock is trading up about 4.3% today at $13.24 in a 52-week range of $9.35 to $26.00. How quickly investors forget.

Paul Ausick

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