Historic sale at world-renowned The Economist! Long-standing family quietly withdrawing
British billionaire philanthropist Lynn Forester de Rothschild has decided to divest all of her family's shares in The Economist, considered an 180-year-old legacy. According to a report by Axios, the sale process has officially begun and discussions with potential buyers are underway.
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The Rothschild family holds a 26.7% stake in The Economist Group, which was founded in 1843. Approximately 20% of this stake consists of voting shares.
The company's other major shareholder is the financial giant Exor, owned by the Italian Agnelli family. Exor's stake in The Economist stands at approximately 43.4%.
According to information reported by Axios, once the sale is completed, the total market value of The Economist Group is expected to reach 800 million pounds (approximately 1.07 billion dollars). The value of the stake held by the Rothschild family could reach up to 400 million pounds.
The report states that the family's advisors have begun discussions with potential investors in the US and the UK, including family offices and strategic investors. It was reported that the process is being managed by the investment bank Lazard, as previously noted by Bloomberg.
According to Axios, the sale is expected to be completed within this year. However, both The Economist and the Rothschild family have yet to respond to requests for comment sent by Reuters outside of business hours.
The last major share change at The Economist occurred in 2015. At that time, the British-based media giant Pearson sold its 50% stake in the magazine, ending a partnership of approximately 60 years.
In its latest financial report, the company announced that its revenue increased by 2% to reach 368.5 million pounds. The Economist has 1.25 million subscribers worldwide and operates in 14 countries, including the US, China, India, and the United Arab Emirates.