, Columnist
Pearson's Fate in Their Backpacks
Turnaround hinges on students' willingness to go on buying books.
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Fresh-faced American students will arrive on campus in a few weeks to begin the new academic year. British education company Pearson Plc has a lot hanging on whether they actually buy textbooks for their courses, or if they opt for increasingly popular rental plans.
That's because after four years of cost cuts, layoffs, and the recent sale of a chunk of its stake in Penguin Random House, Pearson is more reliant on U.S. higher education than ever before. The business will account for roughly half of profit after the disposals, according to Ian Whittaker of Liberum Research.