Pearson in talks to sell The Economist stake; deal could be worth c.GBP 500m
Pearson is negotiating to potentially shed its 50% share of The Economist, the media company said Saturday.
"Pearson confirms it is in discussions with The Economist Group board and trustees regarding the potential sale of our 50% share in the group. There is no certainty that this process will lead to a transaction," a company spokesman said in a statement. Pearson said it will make further announcements if and when appropriate.
The Sunday Times reported that the deal could be worth as much as GBP 500m (USD 776m).
It noted a Financial Times report which suggested yesterday, 25 July, that Pearson’s Economist stake would be acquired by a group of the magazine’s employees, wealthy individual investors and several trusts. However, Pearson is thought also to have been discussing a deal with a media major and some City sources think the German-listed publisher Axel Springer could be interested, the item reported.
Reuters reported that Pearson wants to sell its half of the weekly magazine to other owners, and that the Agnelli family of Italy confirmed it wanted to expand its position in the group, through its investment company Exor.
The Sunday Times item noted that The Economist is under the control of several trustees with the power of veto over any deal, as well as over the choice of editor.
Pearson announced a few days earlier plans to sell the FT Group to Nikkei Inc. for the equivalent of USD 1.3bn.
The Sunday Times report appeared in print: Business section,