Pearson in Talks to Sell Its Stake of the Economist Group – New York Times

Pearson, the British education company, said on Saturday that it was in discussions to sell its 50 percent stake in the Economist Group, the publisher of The Economist.

"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," it said in a statement. "There is no certainty that this process will lead to a transaction."

Pearson also owns the Financial Times, but announced late last week, after releasing a similar statement, that it had reached a deal to sell the newspaper to the Japanese company Nikkei for $ 1.3 billion. It said that it wanted to focus on its core education business.

The discussions involving The Economist, The Financial Times reported, are focused on other shareholders of the group, including wealthy families like the Schroders, the Cadburys and the Agnellis.

The German media company Axel Springer and the financial information company Bloomberg, which came close to buying The Financial Times, were also approached, the newspaper reported.

But they declined to pursue the purchase because The Economist is held in a trust that guarantees "the continued independence of the ownership of the company and the editorial independence of The Economist," according to its website. The Pearson shares do not allow control.

The Financial Times reported that Pearson's stake was worth more than $ 600 million, and that the Economist Group, which also includes CQ Roll Call, had operating profit of about $ 90 million last year — more than double the profit of The Financial Times.

Pearson also owns 47 percent of the publisher Penguin Random House. When asked, in the wake of the Financial Times sale this week, whether it would also seek to sell that stake, Pearson's chief executive declined to comment.