Pearson (PSO) to Acquire Stake in Barnes & Noble’s (NYSE:BKS) Nook Media Business

Barnes & Noble, Inc (NYSE:BKS) reported on Friday that British education and media publisher Pearson PLC (ADR) (NYSE:PSO), has decided to make a strategic investment of $89.5 million in swap for a 5% equity stake in its Nook Media business.

The New York based Barnes & Noble will possess almost 78.2% of Nook Media after the deal while Microsoft Corporation (NASDAQ:MSFT) owns additional 16.8%.

Penguin publishing house’s parent Pearson’s investment values Nook Media at $1.79 billion. Shares of the Barnes & Noble moved up 4.5% in early trading session while London-based Pearson plunged 0.4%.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Books-A-Million, Inc. (NASDAQ:BAMM) rose +0.80% to settle at $2.53, Hastings Entertainment, Inc. (NASDAQ:HAST) moved down -1.82% to end at $2.16 while Trans World Entertainment Corporation (NASDAQ:TWMC) dropped -3.11% to finish at $3.37on Friday.

Barnes & Noble, Inc. (NYSE:BKS) last session’s volume of 5.49 million shares was higher than its average volume of 1.31 million shares. The stock after opening at $14.74 hit high price of $15.74 and then closed at $14.97 by scoring +4.32%.

BKS generated revenue of $7.16 billion in the previous twelve months and earned -$64.39 million. The Company showed a negative -0.66% in the net profit margin as well as in its operating margin which remained at -0.38%.

The BKS’s past twelve months’ price to sales ratio was 0.13 and price to cash ratio remained 1.90. As far as the returns are concerned, BKS’s return on equity was recorded as -8.60% and return on investment decreased -2.28% while its return on asset stayed at -1.11%.

The stock showed weekly downbeat performance of -1.19% which was maintained for the month at -6.73%. Likewise the positive performance for the quarter was recorded as 15.24% and for the year was 3.67% while the YTD performance remained at 3.38%.

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