Its morning newspaper edition alone, which is Japan’s equivalent of the Financial Times, has a circulation of 3.1 million.
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The agreement doesn’t include FT Group’s London property at One Southwark Bridge or Pearson’s 50% stake in the Economist Group but does include its joint venture in Vedomosti, a Russian business newspaper.
The Financial Times, one of the world’s most respected and distinctive newspapers, had been rumored to be for sale for some time, as Pearson has reshaped its business in recent years and its new leadership toned down its longtime devotion for print.
FT chief executive John Fallon told reporters he believed that, like Pearson, the new owner had a commitment to the “fairness and accuracy of its reporting, and to the integrity and independence of its journalism”.
Nikkei Inc.is the largest independent business media group in Asia.
The Financial Times is widely seen as both a trophy – similar to The Washington Post, which Amazon entrepreneur Jeff Bezos bought for $250 million in 2013 – and as a successful enterprise that has built strong circulation and subscription numbers, both in print and online.
UPDATE with official confirmation: Publisher Pearson has confirmed it has sold the to Japanese media company Nikkei for $1.3 billion.
“We share the same journalistic values”, said Tsuneo Kita, Mikkei’s chairman and CEO. Nikkei emerged as the surprise victor, following speculation in a number of publications that Germany’s conservative media group, Axel Springer, was the front contender to take over the newspaper. Analysts and bankers had for years been waiting for Pearson to sell the trophy asset, although the names most closely linked with a deal were financial data terminal providers Bloomberg and Thomson Reuters, parent of Reuters news agency.
The New York Times’ Hiroko Tabuchi questioned Nikkei’s journalistic integrity, while others used humour to express surprise.
“Pearson will now be 100pc focused on our global education strategy”. Most of the proceeds from the disposal will be subject to United Kingdom Substantial Shareholder Exemption taxation relief but Pearson expects to pay tax on disposal of approximately £60 million.
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FT education products serve two-thirds of the world’s top business schools, according to Pearson. It owns the flagship newspaper Nikkei and other operations, ranging from books and magazines to digital media, database services and broadcasting. However, it has struggled to expand from its home market.
