Barnes & Noble is having a good end to the year, thanks to the gift that keeps on giving -- the Nook.
British book publisher Pearson (PSO) said Friday that it would pay nearly $90 million in cash for a 5% stake in Barnes & Noble's Nook division. Microsoft (MSFT) already owns a 16.8% stake, leaving Barnes & Noble with 78.2%.
That was enough to offset any disappointment over Barnes & Noble's sales forecast. The bookseller said in a regulatory filing Friday that holiday sales would fall short of its expectations and Nook sales would also miss targets for the year.
Investors don't seem too concerned. Shares of Barnes & Noble (BKS) rallied nearly 10% before pulling back a bit.
And traders on StockTwits were also cheering the Pearson deal.
That did seem a bit of a contrarian move but maybe investors really aren't too worried about sales falling off a cliff. It may be a whole different ballgame when the actual numbers come out but for now, investors are willing to take a wait and see stance.
There's also an argument to be made for how book publishers can battle against Amazon, which not only sells boatloads of hardcover and paperback books, but which has also been on fire (pun intended) with its many iterations of the popular Kindle.
Not a member yet?Sign up now for a free account
|Coast to coast, and in between, local news is standing up to Trump's press attacks|
|MoviePass will limit the movies you can see each day|
|Big Oil is racing to pump all the oil out of Texas|
|Could Elon Musk lose control of Tesla?|
|Walmart sales growth was the best in a decade|