Pearson Agrees to Sell the Financial Times to Nikkei for $1.3 Billion -- 5th Update

By Simon Zekaria 

LONDON-- Pearson PLC on Thursday said it would sell FT Group, which includes the Financial Times newspaper, to Nikkei Inc. of Japan for GBP844 million ($1.32 billion).

The cash sale means Pearson is jettisoning one of its flagship media assets to sharpen its focus on its key education businesses.

For years, the London-based company--which generates about 60% of its sales in North America and three-quarters of its revenue from education--has rejected talk it would sell its salmon-colored, business-focused title.

However, on Thursday the company said that after 60 years of ownership it was best for the FT to be part of a "global, digital news company."

Shares in Pearson traded about 2.7% higher after the announcement.

The agreement doesn't include FT Group's London property at One Southwark Bridge and Pearson's 50% stake in the Economist Group. The transaction is subject to a number of regulatory approvals and is expected to close during the fourth quarter of 2015.

Write to Simon Zekaria at [e-mail]

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