Pearson Plc is in talks to sell its 50 per cent stake in the Economist Group, the publisher of the international news and business magazine.
“Pearson confirms it is in discussions with the Economist Group board and trustees regarding the potential sale of our 50 per cent share in the group,” the company said in an e-mailed statement on Saturday. “There is no certainty that this process will lead to a transaction.”
A disposal of the stake in The Economist would follow the sale of the Financial Times to Nikkei Inc this week. Pearson Chief Executive Officer John Fallon is seeking to focus on the company’s education business, digital operations and emerging markets to counter a slowdown in mature markets in the US and UK. While Pearson gets almost all its profit from education, the company has struggled the past two years with job cuts and a reorganisation to boost investment in digital services and emerging markets. It’s spending another £30 million ($47 million) this year in part to expand online products.
Nikkei will pay £844 million for the FT Group, which owns the paper and a handful of other media properties, in an effort to become more global and boost its digital growth. The divestment doesn’t include Pearson’s 50 per cent holding in the Economist Group and some London property.Courtesy: Bloomberg
