Feeds

Pearson snaps up one-time multimedia star Dorling Kindersley

£311m buys troubled Web content, Star Wars book purveyor

  • alert
  • submit to reddit

Build a business case: developing custom apps

UK media conglomerate Pearson, owner of Penguin Books, the Econmist and the Financial Times, has agreed to buy troubled publisher Dorling Kindersley for $311 million. The acquisition is a straightforward cash deal, with Pearson offering 430 pence for each DK share. That's four per cent more than yesterday's closing price of 413.5 pence. DK's shares have been rising since 26 January, when the company said it was looking for a buyer. That announcement came a week after it issued a profit warning. At one point, free ISP Freeserve was seen as the likely buyer, with its eye on DK's Web content. DK's finances were hit hard after a lucrative Star Wars: Episode One publishing contract proved... well... not very lucrative. Sales of merchandising - at least in the book business - came nowhere near their anticipated levels, leaving DK with a Death Star-sized pile of unsold items. The company's ill-fated attempts to extend its success in the mid-90s CD-ROM arena into the late-90s Internet world, didn't help much either. In total, the company lost $23.8 million in the six months to 31 December 1999 - the year before it was in profit, to the tune of £3.1 million - despite an increase in sales, much of it before last June's release of Episode One, we suspect. The Pearson takeover is expected to take place within six weeks' time, and will see the departure of founder Peter Kindersley as a company executive. Pearson hasn't said what it plans to do with DK, but as an aggressive pursuer of Internet business, it's likely to beef up DK's own Web and multimedia operation. ® For more UK Internet financial news, visit Cash Register

Boost IT visibility and business value

More from The Register

next story
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?