Publishing: Pearson Makes $89.5 Million Investment in NOOK Media

From a News Release:

NOOK Media, a subsidiary of Barnes & Noble today announced that Pearson, the world’s leading learning company, has agreed to make a strategic investment in NOOK Media.
Pearson has agreed to invest $89.5 million in cash in NOOK Media, LLC at a post-money valuation of approximately $1.789 billion in exchange for preferred membership interests representing 5% equity stake.
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.”
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Will Ethridge, Chief Executive Officer of Pearson North America, said, “Pearson and Barnes & Noble have been valued partners for decades, and in recent years both have invested heavily and imaginatively to provide engaging and effective digital reading and learning experiences. This new agreement extends our partnership and deepens our commitment to provide better, easier experiences for our customers. [Our emphasis] With this investment we have entered into a commercial agreement with NOOK Media that will allow our two companies to work closely together in order to create a more seamless and effective experience for students. It is another example of our strategy of making our content and services broadly available to students and faculty through a wide range of distribution partners.”

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From paidContent:

Separately, Barnes & Noble adds: “Nook Media and Pearson will be also entering into a commercial agreement with respect to distributing Pearson content.

Two months ago we learned that Pearson will merge their Penguin division with Random House, a Bertelsmann company.

In Other Barnes & Noble News…

This new SEC Filing (December 28, 2012) includes the company warning that holiday sales 2012 will be lower than expected and that its NOOK business, “will not meet the Company’s prior projection for fiscal year 2013.”

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