The Courier & Advertiser (Perth and Perthshire Edition)
Pearson in $1bn sale of stake in book publisher
Pearson is to sell a 22% stake in its publishing unit Penguin Random House to Germany’s Bertelsmann for around $1 billion.
The education group will retain a 25% stake in Penguin Random House, whose roster of bestselling writers includes Outlander author Diana Gabaldon.
Pearson said the deal will allow it to return £300 million to shareholders via a share buyback.
The proceeds will also allow it to strengthen the balance sheet and invest in its digital transformation.
Pearson CEO John Fallon said: “Combining Penguin with Random House has proved to be a great publishing success, as well as enabling some big cost savings.
“This has benefited readers, authors, and shareholders.
“Today’s deal enables Pearson to realise a significant amount of the value we’ve helped to create whilst continuing to be part of the world’s biggest and best trade publisher.
“We will use the proceeds to maintain our strong balance sheet, invest in our business and return £300m to shareholders.”
Pearson has had a difficult time of late and in February posted a dismal set of annual results, which included a £2.5bn impairment charge, pushing it to a record £2.6bn loss.
The firm has also issued a string of recent profit warnings.