According to a New York Times report, Michael Bloomberg is mulling over his options to acquire Financial Times group, one of the most respected financial news organizations in the world. New York City Mayor and owner of financial news corporation Bloomberg LP, Michael Bloomberg is weighing the possibility of making a bid to acquire the Financial Times Group.
The sale of Financial Times group would include total ownership in newspaper along-with a 50% ownership of Economist magazine. But Bloomberg who reportedly is an admirer of the publication is cautious about the business aspect of owning a newspaper.
Last month, Bloomberg reported that the parent Pearson group is looking to sell the venerable financial. Pearson does not list the financial results for the newspaper seperately but experts believe that it loses money. Pearson is in the midst of a management transition as the current CEO Marjorie Scardino is set to step down by the end of this month, it was the announcement of Scardino’s departure that set the rumour mill abuzz with the talk of a potential sale. Scardino who comes from a journalism background famously declared that Pearson would sell the newspaper “over my dead body”.
FT has a global combined print and digital subscription of 6,00,000. Experts have evaluated the cost of FT group at $1.2bn which is within the reach of Bloomberg LP which has revenue of $7.6bn. But others are of the opinion that owing to the quality of FT, the parent group should not consider selling it at even $2bn.
Experts believe that the newspaper could go up for grabs in early next year. As the Pearson’s incoming CEO, John Fallon, who rose on education business does not share the fondness of print business like his predecessor. Pearson’s education business is doing well as it churns out revenues to the tune of $10bn and has a market capitalization of $15bn. And many believe that the deep pocketed Pearson does not need to sell FT in order to raise capital.