Saturday, July 25, 2015

Pearson in Talks to Sell its 50 Per Cent Stake in the Economist Group

Pearson is in negotiations to sell its 50 per cent stake in the Economist Group, publisher of the stodgy Economist magazine, reports FT.

Pearson’s stake is considered to be worth about £400m,

The talks come in the same week as Pearson’s £844m sale of the FT Group to Nikkei of Japan.

Pearson acquired half of the Economist in 1957, as part of its acquisition of the Financial Times. But its stake is constituted of B shares, which entitle it to name only six of the 13 members of the group’s board.

The majority of the board are named by the holders of the A shares - families including the Cadburys, Rothschilds and Schroders, as well as some current and former employees. The Economist’s editorial independence is safeguarded by the fact that the trustees must approve any transfer of A or B shares, and the appointment of each new editor, reports FT.

Sales of print advertising at the Economist fell 18 per cent in 2014.


No comments:

Post a Comment