Pearson Shares Decline After Best-Selling Author Tom Clancy Dies
Pearson Plc (PSON), part-owner of Penguin Random House, declined the most in more than a month after the death of novelist Tom Clancy, one of the publishing house’s best-selling authors.
The stock fell 2 percent to 1,225 pence in London trading today, the biggest one-day drop since Aug. 29, following news of the author’s death at the age of 66. The shares have climbed 3.1 percent this year.
Pearson is losing an author that produced a string of novels ranked No. 1 on the New York Times best-seller list, including “The Hunt for Red October” (1984), “Patriot Games” (1987), “Clear and Present Danger” (1989), “The Sum of All Fears” (1991) and “The Bear and the Dragon” (2000). His 17th novel, “Command Authority,” is due out in December.
Pearson co-owns the publishing house with Bertelsmann following a merger of Penguin and Random House in July. Bertelsmann has a 53 percent stake in the joint venture, while Pearson owns 47 percent. Combined, Penguin Random House had revenue last year of 2.6 billion pounds ($4.2 billion) and operating profit of 346 million pounds.
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