East meets West: Nikkei picks up the FT

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East meets West: Nikkei picks up the FT

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East meets West: Nikkei picks up the FT
A cash offer of £844m from the giant Japanese financial information business Nikkei, a sometime partner of the FT, was too attractive to pass up for Pearson, whatever strategic reservations it felt about offloading the title or doing so now.
The deal does not include Pearson’s coveted 50% stake in the Economist (or the FT’s London headquarters), so represents a considerable premium, of 35x earnings and 3x revenues by our estimates.
Increased competition in the premium financial information market suggests the FT was a good consolidation opportunity. For Nikkei the move develops its opportunities in Europe and the US.