Wall Street Journal:

Barnes & Noble Inc. has terminated its commercial agreement for its Nook e-reader with Microsoft Corp. , a move it said provides a clearer path toward the impending split of its business.

The bookstore retailer bought out Microsoft’s preferred interest in Nook for about $120 million in cash and stock, freeing the software giant from further investments in the business.

Barnes & Noble added it expects the planned split of its Nook Media unit from its retail stores to occur by the end of August, behind its initial projection for a separation by March. Ending the partnership would also make it easier for Barnes & Noble to sell the division if it chooses to explore that option.

Considering that Microsoft poured $300 million into the deal in the first place, with a commitment of another $300 million to stave off debt, I’d call this cutting your losses and moving on.

For those with an interest in such things, here’s a link to the Form 8-K filed by Barnes and Noble. The 8-K is required when a publicly traded US company has news of major financial impact, like the retirement of a CEO or an upcoming merger.