Publishing company Pearson has agreed to invest $89.5 million in cash in Barnes & Noble’s digital content company Nook Media. Nook Media is currently valued at about $1.789 billion, which gives Pearson a 5 percent equity stake in the business. Pearson brings expertise in online learning and digital content to the table.
Here is more from a Barnes & Noble press release: “Following the closing of the transaction, Barnes & Noble will now own approximately 78.2% of the Nook Media subsidiary and Microsoft, which also holds preferred membership interests, will own approximately 16.8%. Subject to certain conditions, Pearson will earn the option to purchase up to an additional five percent ownership in Nook Media.”
“We formed Nook Media to be a leader in the exploding market for digital content,” explained William Lynch, CEO of Barnes & Noble, in a statement. “Pearson is a forward thinking company similarly focused on reading and learning, with powerful assets and a terrific management team. We welcome their partnership in Nook Media, and look forward to working with them and Microsoft to deliver great digital experiences for our shared customers.”