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Jan 21 – Jan 27, 2013 Edition Pearson Completes Investment in Barnes & Noble
January 24, 2013/Authorlink News–Pearson, the parent company of Penguin Publishing, today completed its financial investment in Barnes and Noble’s Nook Media. The transaction infuses ailing Barnes & Noble with $89.9 million dollars to help it compete in the digital market.
Pearson now owns a 5% stake in Nook Media, while Microsoft owns 16.8% after its $300 million dollar investment last year. Barnes and Noble, which began separating its retail bookstore chain from the digital division, maintains a 78.2% share of the digital unit, but may still be looking for other investors.
Digital sales grew by 70% in 2012 over the previous year, and the company recently expanded into the United Kingdom. The Pearson investment into the Nook division will allow the company to expand into further European markets, possibly including Germany, Spain, France and the Netherlands.
Will Ethridge, Chief Executive Officer of Pearson North America, said at the time the deal was announced, “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. 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.”