The stock price of the Reader's Digest Association has been relatively flat, closing yesterday at $27.375, up 93.75 cents.
The deal is the most ambitious move yet by Reader's Digest Association into children's publishing.
Reiman sold his remaining interest in 2002 to the Reader's Digest Association.
The Reader's Digest Association founded the first magazine sweepstakes in 1962.
The Reader's Digest Association was one of the first companies to make such use of its data base, which now includes 50 million subscribers.
The Reader's Digest Association did not disclose how much it was investing in the venture.
In early 2006, Reader's Digest Association announced its purchase of Allrecipes.com for $66 million.
On the face of things, it would seem that the Reader's Digest Association has nothing to worry about.
She also serves as a director of Reader's Digest Association, Inc.
Investors in the Reader's Digest Association have learned that lesson.
