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Pearson Buys 5% Stake in Nook Media

2 January 2013

From Shelf Awareness Pro:

Pearson is buying 5% of Nook Media, the subsidiary of Barnes & Noble that includes the company’s digital and college store businesses, an investment of $89.5 million in cash. Last April, Nook Media was set up when Microsoft made a $300 million investment. Following the Pearson transaction, B&N will own 78.2% of Nook Media and Microsoft will own 16.8%. Under the terms of the agreement, Pearson has the option of buying another 5% stake in Nook Media.

Last year, Pearson, which is focusing on its education business, agreed to a merger of its Penguin Group operations with Random House, under which Bertelsmann will have a 53% stake in Penguin Random House.

. . . .

Will Ethridge, Pearson North America CEO, said the deal allows “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.”

Link to the rest at Shelf Awareness Pro

Big Publishing, Nook

6 Comments to “Pearson Buys 5% Stake in Nook Media”

  1. Interesting. Last summer I predicted that book publishers would find direct-to-reader channels and now they are moving in on them. From here, Pearson could create a proprietary tablet (unlikely) or a proprietary alliance (Penguin books arrive on the Nook four weeks ahead of Kindle? Pearson text books on proprietary Nook-for-School?)

    Smart move by Pearson.

    Peace, Seeley

    • Easier for them to make their own apps (like the Nook app or Kindle app) that run on other’s platforms.

  2. I agree, interesting. I remember an article you posted awhile back, PG, where someone suggested that Publishers buy Barnes and Noble. This is sort of coming at it from the side – supporting the technology – but it’s very interesting.

  3. I’m not sure if this is a good move on the part of Pearson or not. On the surface it may make sense business-wise, but I can’t discount the mind-set of the people in charge.

    If they start adapting to the changing environment better this may work out very well for them, if not, they just bought an 89 million dollar seat on the Titanic.

    Time will tell.

  4. Yeah, when B&N announced this, they also announced that Nook Media was going to miss their 2012 numbers. I don’t think this marks anything other than more desperate flailing on Pearson’s part.

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