Jinfo: End of an era - FT pulls out of FTSE

End of an era - FT pulls out of FTSE
Jinfo Blog

12th December 2011

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LiveWire readers will be aware of the Financial Times’ successful metered paywall. A few weeks ago I reported on the announcement that ft.com had increased its digital subscriber base by 30% over the previous year, largely due to an increase in corporate licences and innovations such as the paper’s web app. Further good news for ft.com came at the end of November, when it won the prestigious EPPY award for best large news website.

FT’s parent Pearson clearly views business information as a large part of its future, confirmed by today’s announcement that it is selling its stake in FTSE International Group to the London Stock Exchange. Pearson had a 50% share in the company, which it has sold for £450 million.

This disposal not only marks the end on an era for the index sector – the FTSE index was first launched way back in 1962 – it also marks Pearson’s shift away from any involvement in financial data. According to the press release, the company sold its 61% stake in IDC last year for $2 billion.

In the course of its 50 year existence, the FTSE index has developed an enviable reputation for accuracy and reliability and, according to the London Stock Exchange announcement, currently calculates and manages over 200,000 indices globally. Users of the FTSE indices are being assured that under the new ownership investment in product development and international expansion will continue and indeed, grow.

Pearson meanwhile, with its new cash injection plans to invest in its business information, education and consumer publishing divisions. As Marjorie Scardino said: “We are freeing up capital for continued investment in a proven strategy: becoming more digital, more international and more service-oriented in education, business information and consumer publishing.”

To prove the point, the company recently acquired the Chinese test preparation company Global Education & Technology Group, which is also a leading provider of educational courses in China.

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