Pearson to take on Amazon by buying stake in e-reader venture Nook
Financial Times owner Pearson has made a move into the e-reader market, purchasing a five per cent stake in Barnes & Nobles’ digital book venture, Nook.
The deal, reported to be worth $89.5 million, includes the option for Pearson to up its stake in Nook to 10 per cent in the future.
Following the deal, Barnes & Noble will hold a 78.2 per cent stake in Nook Media, Microsoft holding 16.8 per cent, with the remaining five per cent from Pearson.
Pearson said the aim of the strategic investment is to boost its north American learning division by better tapping into the student market with digital products.
Will Etheridge, chief executive of Pearson North America commented: "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."
"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".