Barnes & Noble gains $89.5MN investment in NOOK Media
Michelle Clancy | 31-12-2012
Barnes & Noble subsidiary NOOK Media has snagged an $89.5 million investment from Pearson, which it will use to advance its streaming video and digital content initiatives.
Pearson's investment will give it a 5% equity stake that has a post-money valuation of approximately $1.789 billion. Following the closing of the transaction, Barnes & Noble will now own around 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 5% ownership in NOOK Media.
Pearson's strategic investment in NOOK Media will accelerate customer access to digital content by pairing its 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, the companies said.
"We formed NOOK Media to be a leader in the exploding market for digital content," said William Lynch, CEO of B&N, 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."