Last Update: 28-Dec-12 08:56 ET
Barnes and Noble shares soar 11% following Pearson investment in Nook Media
Pearson confirms strategic investment in NOOK Media, LLC, a new company consisting of Barnes & Noble's (BKS $16.25 +1.90) digital businesses including its NOOK e-reader and tablets, the NOOK digital bookstore and its 674 college bookstores across America. Pearson will invest $89.5 million in cash in NOOK Media, gaining a five per cent 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. Pearson's strategic investment in NOOK Media will help accelerate customer access to digital content by pairing the company's leading expertise in online learning with NOOK Media's expertise in online distribution and customer service. This will facilitate improved discovery of available digital content and services, as well as seamless access.
Pearson confirms strategic investment in NOOK Media, LLC, a new company consisting of Barnes & Noble's (BKS $16.25 +1.90) digital businesses