Barnes & Noble and Microsoft have announced today that major publisher Pearson has purchased a stake in their joint Nook Media division.
To secure distribution, Pearson will pay $89.5 million for a five percent stake.
It appears that Pearson taking the stake will help the publisher "gain favorable distribution for its education books" within the popular digital world of the Nook.
"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," read Pearson's statement.
The deal comes on the heels of B&N's warning to investors that its holiday sales "will be below expectations and that the Nook business will not meet the company's prior projection for fiscal year 2013."
Microsoft will now have a reduced 16.8 share of the company, as will B&N, down to 78.2 percent.
It appears that Pearson taking the stake will help the publisher "gain favorable distribution for its education books" within the popular digital world of the Nook.
"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," read Pearson's statement.
The deal comes on the heels of B&N's warning to investors that its holiday sales "will be below expectations and that the Nook business will not meet the company's prior projection for fiscal year 2013."
Microsoft will now have a reduced 16.8 share of the company, as will B&N, down to 78.2 percent.
