Pearson has made a strategic investment in NOOK Media LLC, a manufacturer of e-readers and tablets which also runs 674 college bookstores across America alongside its NOOK digital bookstore and content delivery platform. In the transaction, Pearson will invest $89.5 million in cash giving it a 5% equity stake. Following the transaction, Barnes & Noble will own approximately 78.2 percent of NOOK Media and Microsoft will own approximately 16.8 percent. Subject to certain conditions, Pearson will earn the option to purchase up to an additional five percent ownership in NOOK Media.
Nook Media was spun off from Barnes & Noble Inc earlier this year when it also announced a partnership with Microsoft, wherein the latter purchased a 17% stake in the new firm for $305m, which gave the firm a $1.7 billion post money valuation (source:http://techcrunch.com/2012/10/04/nook-media-officially-spins-out-of-bn-with-microsofts-help-plans-to-enter-ten-new-markets-by-next-year/). Pearson’s announcement also comes after company announced that holiday sales had declined compared to 2011 and that demand has been weaker than expected.
Will Ethridge, CEO of Pearson North America, said “Pearson and Barnes & Noble have been valued partners for decades,” and that “with this investment we have entered into a commercial agreement with NOOK Media that will allow our two companies to work closely together in […] making our content and services broadly available to students and faculty through a wide range of distribution partners.”
UK, London & USA, New York, NY
Related links:
- Pearson announces Investment in Nook Media Posted on January 5, 2013
- Pearson and Bertelsmann agree Penguin and Random House merger Posted on October 29, 2012
- Bertelsmann and Pearson in talks about combining their publishing divisions posted on October 25, 2012
- Pearson acquires online learning business EmbanetCompass for $650M Posted on October 16, 2012
- Pearson – first 6 months results Posted on July 30, 2012
- Pearson to acquire Author Solutions for £116M Posted on July 19, 2012
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- Bertelsmann acquires digital media agency Smashing Ideas for Random House Posted on May 10, 2011
- 72% rise in profits at Pearson Posted on February 28, 2012
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- Pearson to acquire Schoolnet for $230M Posted on April 29, 2011
- Pearson agrees to buy Education Development International Posted on March 8, 2011
- Pearson acquires TutorVista – Expands Pearson’s education business in India Posted on January 19, 2011
- Pearson to acquire SEB’s school learning systems business Posted on August 13, 201o
- Pearson to buy Melario for £99.3 million Posted on May 20, 2010
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