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Barnes & Noble, Inc. Message Board

  • schneckden schneckden Jan 24, 2013 9:49 AM Flag

    Any word on when MSFT starts paying BKS $85mn / year?

    has management made any mention recently of when they will live up to their end of the MSFT deal entitling them to start receiving the $85 million mentioned in the 10Q?

    Sentiment: Strong Buy

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    • If you were to go back and read the right articles or documents, or as I recall check the conference call after the deal was done you can get that infomation.There is an arrangement for quarterly MSFT cost sharing or development money handled on the balance sheet in some special manner. There will be a total of $605 million less the $300mil received. I have no reason to believe it is impossible for the collaboration to fall apart, but it is unlikely given the MSFT stake in NOOK. But if NOOK or BKS falter, that's a different story. I'm starting to get that old feeling about this operationthough that I've had before about something I gave too much rope before. The rope was used to hang us.It was the old original pre-BK (AX)/(GX). Things just moveand move around the same way with the same pump and dump feeling.

      The HD's Numbers will be in this quarter........... That's the only hope for change because they had all oJanuary to continue selling and shipping. But last year thay used an excuse that there were massive returns after the first of the year that ran as far as in to I believe the next quarter. My trust itself is waning.

      GOOD LUCK!

      • 1 Reply to gxstockholders
      • So this Windows 8 app should now entitle BKS to receive $60 million a year for 3 years if i recall? This should hit the income statement and boost BKS margins. I think its just goofy that the Pearson and MSFT investments are sitting in the liability section of BKS's balance sheet. These are investments, not liabilities. BKS put them as liabilities b/c the investments have 5 year put options exercisable by MSFT and Pearson if BKS doesn't spin off the NOOK business. Obviously BKS is going to spin it off. If anything, BKS is extremely incentivized to spin off NOOK sooner than later as BKS locked in this 1.7 billion valuation with MSFT and Pearson. If the IPO price values BKS less than 1.7 billion, MSFT and Pearson have to be made whole through larger % interests. It wouldn't surprise me if BKS lays out the IPO of NOOK on the next earnings release as everyone expects them to report #$%$ numbers (I don't, as they suggested the retail stores are performing ok) and gives investors something to cheer about!

        Sentiment: Strong Buy

    • I think they already have invested in full, but I am sure they have retained rights to invest more ownership.

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