Tilson conservatively valued the ebook business at 1 x sales ($900 million).
The investment by Microsoft values the new Nook and e-book business unit at approximately $1.7 billion. It is this valuation that has really caught investors attention since it greatly increases Barnes & Noble's valuation when compared to its pre-Microsoft investment total market capitalization, which was in the neighborhood of about $800.
That's what makes this Microsoft investment really interesting. Just the new venture betwen MSFT and BKS is worth over $1.5 Billion. Not including the rest of the company. This is an interesting stock play.