Worldwide education publisher Pearson announces $89.5m investment for e-reader retailer NOOK Media.

NOOK Media, the US-based subsidiary of book retailer Barnes & Noble (B&N) that handles its NOOK e-reader, will receive $89.5m cash in strategic investment at a post-money valuation of approximately $1.79bn from education publisher Pearson.

Once completed, Pearson will own a 5% equity stake in the B&N spin out, and will earn the option to purchase another five percent. B&N will retain a 78.2% stake in NOOK, while Microsoft will own approximately 16.8%.

Microsoft took part in a venture round when NOOK was first being spun out of B&N in January of 2012. The software developer invested $300k, and was the sole participant in the round.

Pearson said in a joint statement that the strategic investment will pair “its leading expertise in online learning with NOOK Media’s expertise in online distribution”.

“We formed NOOK Media to be a leader in the exploding market for digital content,” said William Lynch, chief…

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