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Pearson boosts Web push
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January 26, 2000: 9:13 a.m. ET
Financial Times publisher raises $450M to fund expansion; viewed as Net stock
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LONDON (CNNfn) - London-based media group Pearson accelerated its push onto the Internet Wednesday with a 250 million-pound ($450 million) investment to fund the development of Web content.
The company, best known as publisher of the Financial Times, has units involved in a wide range of business-to-business information, education and book publishing.
Pearson raised the money for its new investment program by selling shares in a placing with selected investors at 2,200 pence a share. The dilution caused by creating new shares effect weakened Pearson (PSON) stock, which fell 1.4 percent to 2,282 pence. The shares fell as low as 2,210 earlier in the session.
However, the move was welcomed by analysts, who said the merger landscape has been redrawn since the announcement that CNN's parent Time Warner (TWX) would merge with America Online (AOL).
"Pearson is looking more and more like an Internet stock," SG Securities analyst Anthony de Larrinaga told Reuters.
Pearson said the funds will be invested over two years, partly to develop its FT.com online business news service and create a network of sites providing European and U.S. financial news.
"Content and brands count more than ever in this world," Pearson Chief Executive Marjorie Scardino said in a statement.
Pearson also plans to set up consumer education services aimed at students, parents and teachers and explore opportunities in Spain, Portugal and Latin America. 
-- from staff and wire reports
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Pearson
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