23rd Jul 2015 10:57
LONDON (Alliance News) - Pearson PLC Thursday confirmed it is in advanced discussions over the potential sale of the FT Group, consisting of the Financial Times, a 50% shareholding in The Economist Group and the Vedomosti joint venture in Russia.
However, it provided no details of whom it is in discussions with, and said there can be no certainty these talks will lead to a sale.
"A further announcement will be made if and when appropriate," the company said.
The response follows a reporting from Reuters that Pearson was set to announce a sale of the Financial Times "imminently" to a "global digital news company."
Speculation has been mounting that Pearson would look to sell the financial newspaper as it looks to focus increasingly on its education and publishing businesses. It has owned the Financial Times since 1957. Pearson, which at one point was a media and entertainment conglomerate, has previously owned assets including The Tussauds group - consisting of Alton Towers and the Madame Tussauds waxwork museums.
Bloomberg had reported Pearson was exploring a potential sale of the Financial Times on Monday. That report suggested the sale may value the business at as much as GBP1 billion, and suggested Axel Springer SE as a potential suitor.
John Micklethwait, former editor-in-chief of the Economist, replaced Matt Winkley as editor-in-chief of Bloomberg News at the start of this year.
Pearson last broke out the FT Group's financials in 2013, when it reported an adjusted operating profit of GBP55 million, and sales of GBP449 million. The Financial Times said its total circulation grew 10% in 2015, and subscriptions up 21%.
Shares in Pearson are trading up 1.8% at 1,231.00 pence Thursday morning, one of the best performers in the FTSE 100.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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