After unloading the Financial Times for $1.3B, Pearson looking to shed Economist stake

Pearson is looking to divest of its 50 percent stake in The Economist, it said in a statement released today.

“Pearson confirms it is in discussions with The Economist Group Board and trustees regarding the potential sale of our 50 percent share in the group..There is no certainty that this process will lead to a transaction”.

The announcement came on the heals of the announcement Thursday that Pearson was selling The Financial Times newspaper, the online sites FT.com and FTChinese.com, and related properties to the Japanese media group Nikkei for 88 million pounds cash (1.3 billion dollars).

A Reuters report indicates Pearson will focus on its education business.  Italian holding company Exor announced it was part of the conversation on its website. Exor current holds 4.72 percent in the Economist, and is also a major shareholder in Fiat Chrysler Automobiles.  Other owners of The Economist include the Schroder, Rothschild, and Cadbury families.

The Economist has a dual class ownership structure, with Pearson owning only class B shares.  Any potential transaction would need consent from the Class A shareholders, and approval by the trustees.  The Reuters report, citing unnamed industry bankers, claims the dynastic European family holders are unlikely supportive of Pearson’s efforts to sell their stake to a third party.  Aside from the print publication, The Economist Group also runs a research and analysis division (The Economist Intelligence Unit)n and CQ Roll Call, and had profits in 2014 of 60 million pounds

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