Microsoft Corp.’s share price up, to sell back its stake in Barnes & Noble Inc.’s Nook Media

Microsoft Corp. revealed that it is to sell back its stake in the Nook electronic-reader unit of Barnes & Noble Inc. for about $180 million less than the price it had initially paid. The business has been faced with difficulties lately, while the Chief Executive Officer, Satya Nadella, has been primarily seeking more profitable projects.

The information was confirmed by Barnes & Noble, which announced that it is to buy back the 16.8% stake of Microsoft in its Nook Media LLC business. The bookstore chain said that it is to pay a price of about $125 million in both cash and common stock. According to the companys statement, $62.4 million will be paid by Microsoft plus 2.7 million shares.

Mr. Nadella, who was appointed at the position of a Chief Executive Officer in February, has been recently trying to consolidate the company by reducing some of the investments and initiatives, which were started by his predecessor Steve Ballmer.

The U.S.-based technology giant bought a stake in the Nook business in 2012 at the price of $300 million. The investment was made by Microsoft in order to help it secure content and programs for its Windows 8 operating system.

Microsofts decision to end its alliance with Barnes & Noble is also considered to provide the latter with the opportunity to proceed with its plans to divide itself in two separate publicly traded entities. The separation of Nook Media business from the retail store business of Barnes & Noble is expected to be finalized by August 2015. Previously the separation was forecast to occur by March 2015.

The Chief Executive Officer of Barnes & Noble, Michael Huseby, said for the Financial Times that U.S.-based tech companys exit from the pact would “allow the company to continue its rationalisation of the Nook digital business and enhance Barnes & Noble’s operational and strategic flexibility”.

Microsoft Corp. was up 1.58% to close at $48.84 per share yesterday, marking a one-year increase of 25.42%. The company is valued at $396.32 billion. The companys shares traded at €39.41 in Frankfurt as of 8:24 GMT. According to CNN Money, the 33 analysts offering 12-month price forecasts for Microsoft Corp. have a median target of $50.00, with a high estimate of $56.00 and a low estimate of $34.00. The median estimate represents a +2.38% increase from the last price of $48.84.