Following the recent sale of the Financial Times to Nikkei, Pearson has now sold its 50 percent stake in The Economist Group as well, for £469 million (or $731 million). Three-fifths of their stake (or a 30 percent share in the Economist) goes to Exor, the holding company for minority shareholder Agnelli, while the remaining portion (a 20 percent share) has been bought back by the Economist Group itself, funded by the sale of their headquarters, the Economist Complex, which has been the editorial team’s home for more than five decades. Pearson noted the “proposed changes will be put to a shareholder vote next month […]
Finance
Family Christian Bankruptcy Reorganization Is Approved
As expected, the revised, final and only viable reorganization plan for the bankrupt and ever-diminishing Family Christian Stores was approved by Bankruptcy Court Judge John Gregg. Per the proposal that was sent to creditors for their approval a month ago, FCS Acquisition is paying between $52.4 million and $55.7 million to acquire the chain, backed by Atlanta businessman Richard Jackson. CEO Chuck Bengochea says he expects they will close a modest 12 to 14 stores from across the 266-store chain. Bengochea credits divine intervention — “We have a sovereign God who has a plan for Family Christian” — rather than the good […]
Sargent Named EVP of Holtzbrinck Publishing Group
The Holtzbrinck Publishing Group formally announced the new management structure for its major operating business, following the formation and restructuring of Springer Nature (in which Holtzbrinck has a controlling 53 percent share). John Sargent has been appointed executive vice president of the parent company Holtzbrinck Publishing Group, continuing to manage the global trade publishing business and also overseeing the US higher education unit. (This was “soft announced” in April with the hiring of Ken Michaels to run Macmillan Higher Education and Macmillan New Ventures, reporting to Sargent.) Managing director of Holtzbrinck Digital Markus Schunk will take over responsibility for the digital business units, as head […]
People, Etc.
Jennifer Ung has joined Simon Pulse as associate editor. Previously she was an assistant editor at Scholastic. Kristen Reach has joined the Kenyon Review as associate editor. Previously she was an editor at Melville House. Bankruptcy Filing Filmed Entertainment Inc. — the parent of DVD direct-seller Columbia House — filed for Chapter 11 bankruptcy protection on Monday, citing $2 million in assets and $62 million in liabilities. The unit was part of Bertelsmann’s once-mighty Direct Group, then part of Direct Brands — purchased, along with the Bertelsmann’s North American book club group Bookspan, by Najafi Companies, which transferred the units to the mysterious […]
The Next Spinoff: Donnelley to Split In Three
RR Donnelley said as part of its second quarter earnings reports that the company intends to divide itself into “three independent, publicly traded companies: one business focused on financial communications and data services; one business focused on publishing and retail-centric print services; and one business focused on customized multichannel communications management.” The split is expected to be completed some time before the end of 2016. CEO Thomas J. Quinlan III said in the announcement, “Over the last decade, we have strengthened our business portfolio through a combination of organic growth and strategic acquisitions, developing new products and services, inventing fresh ways […]
Recorded Books Is Sold to Another Private Equity Owner
Wasserstein & Co. has sold Recorded Books — which incorporates their earlier purchases of HighBridge Audio and Tantor Media — to LA-based private equity firm Shamrock Capital Advisors. Shamrock’s investment portfolio includes Isolation Network, the parent company of INScribe Digital. Terms were not disclosed, though Wasserstein was thought to have paid approximately $25 million for Tantor Media at the beginning of this year. Dow Jones says that Shamrock typically invests anywhere from $15 million up to $100 million. The price was not released when Wasserstein first bought Recorded Books from Haights Cross in 2014, either. In the last reported data, […]