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Pursuits

Pearson's Stock Slump Dwarfs FT, Economist Sale Proceeds

  • Shares lose more than 20% over two days after profit warning
  • CEO says situation `frustrating,' blames cyclical factors
Pearson has agreed in recent months to dispose of the Financial Times newspaper and its stake in the Economist magazine for about $2 billion.

Pearson has agreed in recent months to dispose of the Financial Times newspaper and its stake in the Economist magazine for about $2 billion.

Photographer: Simon Dawson/Bloomberg
Updated on

Pearson Plc just lost a chunk of its market value that’s greater than the combined proceeds from the sale of the Financial Times and the Economist.

The shares fell as much as 8.7 percent Thursday, adding to Wednesday’s 16 percent slump -- the biggest since at least 1988 -- after the education company said full-year profit will be at the low end of its previous range of forecasts. The two-day drop trimmed the stock’s value by 2.3 billion pounds ($3.6 billion). Pearson has agreed in recent months to dispose of the Financial Times newspaper and its stake in the Economist magazine for about $2 billion.