Nook Media, the Barnes & Noble subsidiary that handles Nook e-readers and digital content, announced today that education publisher Pearson has invested $89.5 million, giving it a 5 percent stake in the company.
Nook Media spun out from Barnes & Noble earlier this. B&N owns 78.2 percent , while Microsoft (which made a big investment aimed at bringing Nook content to Windows 8 devices) owns 16.8 percent, according to the press release. The deal gives the company a post-money valuation of $1.789 billion.
The companies paint the deal as a partnership allowing Nook to improve the experience it offers to students. In the release, Pearson North America CEO Will Ethridge says:
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. This new agreement extends our partnership and deepens our commitment to provide better, easier experiences for our customers. 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.
In the regulatory filing discussing the investment, Nook Media also says that it “expects” its holiday sales numbers, which it plans to release on January 3, will fall below the company’s previous projections.