Edtech Business

Pearson Pares Down Again, Sells 22 Percent Stake in Penguin Random House

Jul 11, 2017

PEARSON PARES DOWN (AGAIN): Pearson, which had been seeking buyers for its 47 percent stake in Penguin Random House, found one—partially. The publisher sold 22 percent to German media conglomerate Bertelsmann, which owned the other 53 percent (and now owns 75 percent). The deal will net Pearson about $1 billion, Bloomberg reports. The sale did not assuage investors’ concerns about the company’s future, as shares dipped 8 percent following the deal.

The deal reflects two media giants heading separate ways. “The book business is part of Bertelsmann’s identity,” CEO Thomas Rabe said in a release. Pearson, meanwhile, is continuing its painful path towards becoming a digital education services company. Already it has sold The Financial Times and The Economist; the U.S. K-12 courseware business may be next

Edtech Business

Pearson Pares Down Again, Sells 22 Percent Stake in Penguin Random House

Jul 11, 2017

PEARSON PARES DOWN (AGAIN): Pearson, which had been seeking buyers for its 47 percent stake in Penguin Random House, found one—partially. The publisher sold 22 percent to German media conglomerate Bertelsmann, which owned the other 53 percent (and now owns 75 percent). The deal will net Pearson about $1 billion, Bloomberg reports. The sale did not assuage investors’ concerns about the company’s future, as shares dipped 8 percent following the deal.

The deal reflects two media giants heading separate ways. “The book business is part of Bertelsmann’s identity,” CEO Thomas Rabe said in a release. Pearson, meanwhile, is continuing its painful path towards becoming a digital education services company. Already it has sold The Financial Times and The Economist; the U.S. K-12 courseware business may be next

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