Deals
Pearson Forecasts Years of Textbook Gloom; to Sell Penguin
- German partner Bertelsmann open to buying Pearson’s stake
- Shares drop most on record as company withdraws 2018 forecast
Crises Engulfing Pearson Deepens, Expects Gloom in U.S.
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The crisis engulfing Pearson Plc deepened after the education company cut its profit forecast and predicted years of gloom in the U.S. market, forcing it to slash its dividend and put its stake in the iconic Penguin Random House book business up for sale to raise cash.
The unscheduled announcement sent the stock tumbling the most on record. Pearson projected operating profit this year as much as 19 percent below analysts’ average estimates, after missing half-year estimates in six of the last eight reports. Pearson’s partner in Penguin Random House, majority owner Bertelsmann SE, said it would consider raising its stake in the venture.