, Columnist
Pearson's Penguin Pain
Sale sacrifices earnings to prop up company's balance sheet.
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The compensation for traveling with Pearson Plc on its meandering journey to being the company it wants to be was the dividend. It now looks like the rewards for hanging around for the educational publisher's reinvention are going to be much smaller.
Pearson needs to raise funds to strengthen its financial position amid a restructuring of its core education business in the U.S. That unit is feeling the pinch as learning habits shift online and high book prices force students to rent or buy second hand. Amazon.com Inc. is encroaching on the market, too.