Reed Elsevier plans to sell the publishing operations Reed Business Information (RBI) which publishes a large number of well known titles including Variety, Publishers Weekly and New Scientist. RBI recorded revenues of US$1.78 billion which accounts for 20% of all sales within the group. Reed Elsevier confirmed that it will retain the exhibitions business. The company noted that the advertising revenue generated by the RBI publishing business is more susceptible to the changes in the wider economy and the company aims to move to more subscription-based businesses. Reed Elsevier CEO, Crispin Davis stated that the company currently is not in talks with potential buyers of Reed Business Information and he stated that he expected the sale could take sometime due to the uncertainty in the credit markets. The sale price is expected to be approximately US$2 billion.
Source: Bloomberg article; Courtesy Business Strategies Group, www.bsgasia.com