(Reuters) - Microsoft Corp <MSFT.O> will invest $300 million in Barnes & Noble Inc's <BKS.N> digital and college businesses in a deal that values the businesses at $1.7 billion.
Microsoft will get a 17.6 percent stake in the new unit, called Newco, while Barnes & Noble will own about 82.4 percent, the companies said in a statement on Monday.
On January 5, Barnes & Noble, the No. 1 U.S. bookstore chain, said it may spin off its digital business.
Barnes & Noble and Microsoft have settled their patent litigation, the companies said.
(Reporting by Mihir Dalal in Bangalore; Editing by Joyjeet Das)