Pearson issue a third-quarter overview, reiterating guidance for the full year that anticipates lower profits than in 2012. While sales are up compared to a year, the third quarter was soft (sales were up 7 percent at the end of June; now “continuing sales” are up 4 percent for the first nine months). North American education margins are lower due to “a weak trading environment for college textbook publishing,” as well as “start-up costs associated with new services contracts and by product investment ahead of the implementation of new Common Core standards.” The Penguin Random House merger also “reduces Pearson’s […]
Finance
Corporate: Apple, AudioNoGo, and Lagardere
Apple reported fiscal fourth quarter results for the period ending September 28 after the close of the market on Monday. The company sold 14.1 million iPads in the period, just barely ahead of sales in the same quarter a year ago, with strong iPhone sales of almost 34 million units. They have sold approximately 172 million iPads since the launch of the line in 2010. Sales rose to $37.5 billion, as net profit fell $700 million to $7.5 billion. Lagardere has concluded a long-running dispute with Vivendi over the valuation of their stake in Canal+ France. In a compromise, Lagardere will […]
Ruckus Is Sold
Ruckus Media has found some refuge with mobile app company KiwiTech, which is acquiring a 75 percent stake in the digital children’s media company that has struggled to find a lasting business model. Ruckus founder and ceo Rick Richter will depart following the sale, though he will continue to serve as an advisor. Chief content officer Jason Root will move up to ceo of Ruckus, reporting to KiwiTech ceo Rakesh Gupta. The company’s Wilton, CT office will close, yet Ruckus will still “remain Connecticut based.” Venture capital firm Alsop Louie Partners, which led a $3.5 million series A funding round […]
Briefs: AudioGo Suspends Operations Pending Sale; Inkling Acquires OpenAir
UK-based audiobook publisher AudioGo has suspended operations and is looking for an investment or outright sale, the company’s head of sales and marketing Rachel Josephson confirmed to the the Bookseller. She added: “There is a considerable amount of interest in AudioGO and we are hopeful of achieving a swift resolution. Protecting and respecting the rights of everyone that we work with is uppermost in our considerations and we are grateful for the fantastic support we have received from our colleagues throughout the industry.” The company recently sold its US-based arm Blackstone Audio back to its founders, just ten months after […]
Ten Possible Bidders Still Vying for IMG
The ongoing auction for agency IMG has culled the initial field of 20 or more potential bidders down to ten candidates, in a sale expected to garner $2 billion or more. The NY Post reported that still active bidders include CAA (backed by TPG) and William Morris Endeavor (backed by Silver Lake), as well as private equity firms KKR and New Mountain Capital; Bain; CVC Capital in partnership with The Chernin Group as well as the Abu Dhabi Investment Authority and Bahrain’s Mumtalakat; and Carlyle Group. Lagardere is among those no longer in contention, though former ICM owner Rizvi Traverse […]
Apollo Said to be Looking to Sell McGraw Hill Professional
Having acquired McGraw-Hill Education in March for just over $2.5 million, Apollo Global Management is reportedly looking to sell off some of the parts less related to core higher ed and K-12 markets. The WSJ reports they are shopping “the professional business,” though it’s not clear if the reporters understand McGraw-Hill’s business portfolio. The story describes the assets for sale as including “a medical information business called AccessMedicine, as well as a reference title business and trade publishing arm.” The company has an actual division called McGraw-Hill Professional that comprises their professional and trade book titles — with components focused […]