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Japan’s Nikkei to Buy Financial Times Group for $1.3 bln

Financial Times Group is not a major revenue generating business for the holding. More than 70% of the proceeds media holding Pearson brings an educational segment.

And the strategy of further development of the company requires a focus on this area. Executive Director John Pearson Fallon said that amid the rapid growth of mobile and social resources, “the best way to ensure journalistic and commercial success FT – is to make it part of a global digital news company,” reports the words of one of Fallon’s main competitors FT – US business publication The Wall Street Journal.

In February, Pearson reported a fall in net profit for 2014 to £ 470 million ($ 734 million) compared to £ 538 million a year earlier. Adjusted operating profit before restructuring costs decreased by 5% to £ 720 million. Sales fell 4% to £ 4,87 billion, in line with market forecasts, while revenues in the most lucrative for the publication of the region, North America, decreased by 3%.

The rumors of a possible sale of Financial Times went on the media market for many years. Possible buyers at the time and called the American Bloomberg, and Thompson Reuters. The starting point for finding a new owner was the departure of former CEO Marjorie Scardino Pearson, who headed the holding company for more than 16 years. She has repeatedly stated that it considers necessary to preserve the Financial Times the holding. But after the departure of Scardino in its place came John Fallon, who previously headed the unit responsible for the production of educational literature.

To get one of the leading business publications in the world wanted and the German holding company Axel Springer. The fact that the negotiations with him, reported at the end of July this year, the very publication of Financial Times, it was noted that the German holding talks progressed much further than Japanese competitors. A few hours after the news came the official information about what the Japanese Nikkei become the next owner of the Financial Times.