Hot Deal on Wall Street: Barnes & Noble, Inc. (NYSE:BKS), Microsoft (NASDAQ:MSFT), Pearson (NYSE:PSO)

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Barnes & Noble, Inc. (NYSE:BKS)’s Nook e-reader and digital-book dealings have been unbeneficial, but are still eye-catching properties due to their business potential.

Shares of Barnes & Noble moved up 6.3% to $15.30 on Friday after London-based education and media firm Pearson PLC, which holds Penguin Books and the Financial Times, stated that it has decided to make strategic investment of $89.5 million in replacement for a 5% equity interest in Barnes & Noble’s Nook Media division, which as well consists of its college-textbook business.

The news assisted offset the bookstore operator’s statement that it anticipates holiday sales to fall short of forecasts, amid a loss in the Nook business. New York-based Barnes & Noble will roll out its last holiday results on January 3.

Pearson PLC (ADR) (NYSE:PSO)’s investment comes following Microsoft Corporation (NASDAQ:MSFT) formerly this year capitalized $300 million for a 16.8% share in Nook Media. The Pearson transaction as well values Nook Media at $1.79 billion, higher than the $1.7 billion valuation at the time of Microsoft’s investment.

After the deal, Barnes & Noble will hold almost 78.2% of Nook Media whereas Microsoft holds another 16.8%. Liberty Media, which as well holds stakes in Sirius XM Radio Inc. (NASDAQ:SIRI) and Live Nation Entertainment, Inc. (NYSE:LYV), has a 17% in the parent firm. Pearson shares were lower slightly Friday at $19.32.

Given the most recent Nook Media valuation, that worth Barnes & Noble at $2.4 billion, comprising $1 billion for the firm’s bookstore-retail business, in relation to Janney Capital’s analyst David Strasser.

Exclusive of the long-term debt and including revised cash, the analyst stated Barnes & Noble’s valuation is almost $2.5 billion, in excess of double the company’s existing market capitalization.