Pearson Investing $89.5 Million In Barnes & Noble NOOK

Posted Dec 28, 2012

Pearson, the British publication company, has invested $89.5 million into the Barnes & Noble NOOK business for a 5% stake.  This values the NOOK business at $1.79 billion.  This is higher than the $1.7 billion that the company was valued at several months ago.  After the investment is received, Barnes & Noble will own 78.2% of the NOOK business.

Microsoft Corporation invested $300 million in the NOOK business earlier this year.  Microsoft owns 16.8% in the company.  Pearson owns 5% in the company and they are thinking about buying another 5% sometime soon.  The value of the NOOK is over double the market cap of Barnes & Noble itself.  The Barnes & Noble NOOK business spun out from Barnes & Noble earlier this year.

NOOK Media has expertise in online distribution and Pearson has experience in online education.  The two companies will be working with each other closer to integrate their two strengths.  NOOK Media said that the investment will help  ?facilitate improved discovery of available digital content and services, as well as seamless access.?

[Source: SlashGear]