Pearson

Within nearly 300 years is the publishing house providing those who learn English, manuals, complete educational solutions and the system of independent assessment of language level.

Assets

For the beginning of 2015 of Pearson company the following brands belong:

• Prentice Hall,
• Addison Wesley,
• Scott Foresman,
• Longman,
• Penguin,
• Dorling Kindersley,
• Financial Times (it is sold in July, 2015),
• The Economist (it is sold in August, 2015),
• Edexce.

Performance Indicators

As of July, 2015, more than 70% of revenue to Pearson media holding are generated by an educational segment. And the strategy of further development of the company assumes focus on this field of activity.

In February, 2015 Pearson reported on fall of net profit 2014 prior to £470 million ($734 million) in comparison with £538 million the previous year. The corrected operating profit before restructuring of expenses decreased by 5%, to £720 million. Sales dropped by 4%, to £4.87 billion that corresponded to market forecasts, at the same time revenue in the most profitable region for the edition, North America, decreased by 3%.

History

1957: Purchase of Financial Times

In 1957 the Pearson media holding purchased Financial Times.

2015

Sale of Financial Times

In July, 2015 Pearson PLC announced sale of FT Group company to the Japanese corporation Nikkei. The cost of the transaction is £844 million ($1.32 billion), reported in Pearson. The agreement extends to the paper newspaper, the website Financial Times and The Banker and Investors Chronicle editions, but does not include the London real estate belonging to FT Group, and a 50 percent share block in^[1].

The transaction will concern also Financial Times share in the Russian business newspaper Vedomosti. At this time FT is a cofounder of Vedomosti and owns 33.3% of stocks of the edition. As expected, closing of the transaction will happen in the fourth quarter 2015.

Rumors about possible sale of Financial Times went in the media market many years. Possible buyers were called in due time both American Bloomberg, and Thomson Reuters. Departure of the former chief executive of Pearson Marjorie Skardino who headed holding within more than 16 years became the starting moment for search of the new owner. She repeatedly said that she considers it necessary to save Financial Times as a part of holding. But after Skardino's leaving John Fallon who headed the division which is responsible for release of educational literature earlier came to her place.

John Fallon reported that against the background of rapid growth of the mobile and social resources "the best method guarantee journalistic and commercial success of FT is to make it a part of the global digital news company", one of main competitors of FT — the American business publication The Wall Street Journal tells Fallon's words.

Wanted purchase one of the leading business publications in the world also the German holding Axel Springer. That with it negotiations are conducted, the edition Financial Times reported at the end of July, 2015, at the same time it was noted that the German holding progressed in negotiations much further the Japanese competitors. Several hours later after this news official information that Japanese Nikkei will become the following owner of Financial Times appeared.

Sale of a share in Economist

On August 12, 2015 it became known that the British publishing company Pearson sells the 50 percent share in the The Economist magazine for 469 million pounds sterling ($731 million) of SpA Exor company, said in the press release of Pearson.

Exor, investment company of the Italian family Agnelli controlling, in particular, Fiat Chrysler automobile concern will acquire at Pearson 27.8% of the ordinary shares The Economist for 227.5 million pounds and also all actions of the class "B" for the total amount of 59.5 million pounds. The ordinary shares The Economist which remained with Pearson for the total amount of 182 million pounds will be redeemed by the^[2].

The transaction requires approval of a number of regulating authorities, 75% of shareholders of The Economist and also independent principals, and, as expected, should be closed in the fourth quarter 2015.

Pearson will direct The Economist sales proceeds to the all-corporate purposes and also investments into development of global strategy in the field of education.

With The Economist sale the company completely leaves business media and intends to be focused on development of educational services.

"Now Pearson for 100% is focused on global educational strategy, - the chief executive officer of the company John Fallon said. - Education changes very quickly, and we see good opportunities for business development here".

Notes