Pearson PLC (PSO) to Invest $89.5M in NOOK Media (BKS) (MSFT)

December 28, 2012 8:49 AM EST
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(Updated - December 28, 2012 8:52 AM EST)

NOOK Media, LLC, a subsidiary of Barnes & Noble, Inc. (NYSE: BKS) announced that Pearson (NYSE: PSO) has agreed to make a strategic investment in NOOK Media, LLC.

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.

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.

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