Is Penguin Random House Next on Pearson’s Chopping Block?


Is Penguin Random House Next on Pearson’s Chopping Block?

Nov 30, 2015

MARCH OF THE PENGUIN? After selling two profitable—and venerable—businesses in The Financial Times and The Economist, Pearson is contemplating a sale of its 47 percent stake in Penguin Random House, the fifth-largest publisher in the world by revenue. Reuters sources say Bertelsmann, the German media conglomerate that owns the rest of Penguin, is seeking a private equity partner to fund the purchase from Pearson. It appears that it’s only a matter of time: Pearson CEO John Fallon has hinted that Penguin is already on the company’s chopping block, although a sale may not happen until 2017.

Under Fallon, Pearson has decisively shifted its focus on educational publishing. The move comes with a hefty price: the company’s stock on the London exchange has tumbled to 829 pence a share at the time of writing, down from a high of 1508 pence in the 2015 calendar year. Shares on the New York Stock Exchange have also dipped, although not quite dramatically.

Learn more about EdSurge operations, ethics and policies here. Learn more about EdSurge supporters here.

More from EdSurge

Get our email newsletterSign me up
Keep up to date with our email newsletterSign me up