I saw you got downvoted for another comment, but in general you've got the narrative right.
Microsoft sent a patent demand letter to B&N. B&N went public as part of its defense. Microsoft countered with two separate deals:
1) Settled the patent issue privately for a revenue-sharing deal and cash payment.
2) Microsoft committed to invest in the Nook business (called New Corp by B&N) which eventually led to Microsoft purchasing Nook for a premium.
So, while the immediate settlement was probably measured in hundreds of millions, the total outlay from Microsoft shareholders to B&N shareholders was close to 1 billion even though it was spread over multiple and disparate deals.
Prior to the patent letter neither company had a significant relationship.
Microsoft sent a patent demand letter to B&N. B&N went public as part of its defense. Microsoft countered with two separate deals:
1) Settled the patent issue privately for a revenue-sharing deal and cash payment.
2) Microsoft committed to invest in the Nook business (called New Corp by B&N) which eventually led to Microsoft purchasing Nook for a premium.
So, while the immediate settlement was probably measured in hundreds of millions, the total outlay from Microsoft shareholders to B&N shareholders was close to 1 billion even though it was spread over multiple and disparate deals.
Prior to the patent letter neither company had a significant relationship.