British publisher Pearson exploring sale of Financial Times: Report

LONDON: Pearson is exploring a sale of the Financial Times after receiving interest from potential buyers, according to people familiar with the matter. London-based Pearson is sounding out possible bidders for the salmon-colored newspaper, said the people, who asked not to be identified because the deliberations are confidential. A sale may value the business at as much as £1 billion ($1.6 billion), two of the people said.

While there is no formal process under way, the Financial Times may draw interest from media companies such as Axel Springer as well as investors in Europe, the Middle East and Asia.

Discussions over a disposal, which have been on and off for years, have heated up as chief executive officer John Fallon focuses on tackling a slowdown in the education unit weighed on by declining US college enrollments and falling textbook sales. No final decision has been made and Pearson may decide to keep the newspaper, the people said. Representatives for Pearson and Axel Springer declined to comment.

Pearson doesn’t break out financial details for the FT, which is part of the professional education unit that reported £1.15 billion in 2014 revenue. The publisher is scheduled to report interim results on July 24. FT’s circulation reached 720,000 last year, with digital subscriptions accounting for 70% of the total. In a move to make more money from online readers, the newspaper in February tweaked its paywall system.

Last year, CFO Robin Freestone said a sale of the FT wasn’t top priority for Pearson. "Do we have to own them? No. But actually it’s one of those brands which, you know, you don’t sell lightly," Freestone said.