Education publisher Pearson, owner of the Financial Times and Penguin publishing, has invested $90m in return for a 5% stake in Nook Media, the maker of the eponymous reading device made as joint venture between book retailer Barnes & Noble and software provider Microsoft.
Pearson will have the option to acquire up to 10% in the future at the same valuation as paid by Microsoft.
Nook is backed by technology company Microsoft, which initially invested $300m in April for a 16.8% stake in the Nook division of US-based book store Barnes & Noble, as part of a spin out of the e-reader division. Barnes & Noble retain the stake.
The total investment values Nook Media at an estimated $1.8 billion.
The new joint company with Pearson’s interest will focus on producing the line of Nook e-readers and tablets, the Nook digital media store, and college bookstores.
Will Ethridge, Pearson North America chief executive, said: “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.”