Two independent UK publishers have reported difficult sales results (following the drop over at Quercus as well). Canongate’s 2011 sales fell 19 percent, to £10.8 million, and pre-tax profit was a meager £300,000, down 70 percent, with an operating loss after taxes. And that margin was boosted by £660,000 from the sale of their 70 percent share in Australia’s Text Publishing. The company blamed “Julian Assange’s failure to deliver the book he had contracted to produce,” without mentioning their decision to publish an unauthorized and ultimately unsuccessful version of his manuscript anyway. Faber and Faber said sales fell 8.4 percent, […]
Finance
Barnes & Noble and Microsoft Finalize Partnership, Now Called Nook Media
Barnes & Noble announced Thursday that it has formally closed its strategic partnership with Microsoft. The new BN subsidiary comprising the Nook and College business, is formally called Nook Media LLC (until now it was simply known by the placeholder NewCo). As originally specified, Microsoft now has an approximately 17.6 percent equity stake in Nook Media, valuing the subsidiary at $1.7 billion (but the stock market still gives Nook Media’s parent company Barnes & Noble a market capitalization of $800 million, even with a bump in shares today after realizing that the investment the market forget about had gone through.) […]
Market Warms to New Era At Pearson
Yesterday’s investor reaction to the coming executive change at Pearson, with John Fallon taking over from Marjorie Scardino at the beginning of 2013, was rather opaque, but today shares traded in the US jumped 2.5 percent at the opening bell, near an all-time high at more than $20 a share. At a news conference, Mr. Fallon said supportive things about Penguin and the Financial Times, calling them “highly successful businesses in their own right” that integrate well with the “strategic grain of what we are trying to do across Pearson.” He called FT in particular a “valued and valuable” part […]
In Australia, Allen & Unwin Buys Murdoch Books
Australia’s Allen & Unwin has successfully completed those exclusive acquisition talks we reported on recently and agreed to acquire illustrated books publisher Murdoch Books. Chairman and CEO of Murdoch Books Matt Handbury hails the new owners’ promise of continuity in quality publishing: “This is what Allen & Unwin has identified and so enthusiastically pursued in our sale negotiations. I am thrilled that the business will become an integral and wholly owned part of the largest Australian independent publishing house, and the efforts that my team have put into building the Murdoch Books brand will seamlessly continue in its new home.” As […]
Scardino to Step Down at Pearson and International Education Head Fallon Will Take Over; Analysts Speculate On Asset Sales
Marjorie Scardino, 65, “has decided to step down” as chief executive of Pearson at the end of the year. Current head of their international education division John Fallon, 50, will take over on January 1, 2013. The company notes his “division is fundamental to Pearson’s growth strategy,” having grown to £1.4 billion in sales and employing 15,000 people in 70 countries. As education has come to dominate Pearson–and produce solid growth–analysts and investor have often lobbied for the sale of the FT Group and Penguin. Scardino had vowed not to sell the FT, but with the change at top, Ian […]
Wiley Buys Online Learning Service Provider for $220 Million
Wiley is investing in online learning services, agreeing to purchase private-held Chicago-based Deltak.edu for $220 million. They say it will “significantly accelerate Wiley’s digital learning strategy and diversify the company’s service offerings to include operational and academic solutions for higher education institutions.” Deltak provides provides technology platforms and services that support over 100 online learning programs. The company had sales of $54 million for the just-ended fiscal year, and the deal is expected to close by the end of the month.