You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • PayPal, eBay going their separate ways
    NEW YORK – PayPal’s impending split from longtime partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challenger Apple Pay.
  • Windows makes leap to 10
    SAN FRANCISCO – The next version of Microsoft’s flagship operating system will be called Windows 10, as the company skips ver­sion 9 to emphasize advances it is making toward a world centered on mobile devices and Internet
  • New Pimcochief couldbring reliefto fund giant
    NEW YORK – With Bill Gross’ surprise departure from Pimco, 45-year-old Daniel Ivascyn now finds himself watching over trillions in assets at the huge mutual fund firm.
Advertisement

Pearson, biggest textbook maker, invests in Nook

– Pearson, the U.K. publisher and education company, is to take a 5 percent stake in Barnes & Noble’s Nook e-reader as technology companies seek new inroads into the potentially lucrative business of digital textbooks for schools.

Pearson PLC will pay $89.5 million cash for a 5 percent stake in Nook Media LLC, which includes the bookseller’s e-reader and tablets, its digital bookstore and its 674 stores serving U.S. colleges. Barnes & Noble will hold 78.2 percent of the business and Microsoft will have about 16.8 percent, the company said Friday.

Shares of Barnes & Noble ended the week up 62 cents at $14.97 on the New York Stock Exchange.

Major tech companies have looked for inroads into the education publishing industry, seeing tablets like the iPad and the Nook as replacements for the dozens of books that students must lug to and from school each day.

Walter Isaacson in his biography of Steve Jobs wrote about meetings between the co-founder of Apple Inc. and major publishers to accomplish just that before his death last year.

Janney Capital Markets described the tie-up between Pearson and Barnes & Noble as an “online education dream team.”

“After this investment from Pearson, it is more clear that Nook Media has its sight set on transforming the way education is administered in the U.S. and around the world,” analyst David Strasser wrote.

Pearson is the largest higher educational publisher in the world and the largest kindergarten-through-high school publisher in the United States, Janney said. The company, which also owns the Financial Times and whose Penguin book brand is in the process of being merged with Random House, reported that its textbooks and training made $3 billion in revenue the first six months of 2012.

Advertisement