David Thomson, third-generation steward of Canada’s Thomson Corporation, made “radical changes” in 2007 that have helped the company emerge as “one of media’s most resilient performers,”
the
Financial Times
reported.
The company sold its college textbooks unit and then acquired Reuters, thus diversifying its portfolio. Although Thomson Reuters’ share price has dropped, the company “avoided the shocks delivered by peers such as Reed Elsevier,” the
FT
article said. The Thomson family’s Woodbridge investment company owns 55% of Thomson, the report noted.
According to Geoffrey Beattie, who is president of Woodbridge and deputy chairman of Thomson Reuters, the difference between the family’s fortunes and those of others is the difference between building and trading.
Beattie told the
FT
that the Reuters deal succeeded because Woodbridge avoided taking on large debts.
By using “super profits” from selling Thomson Learning to private equity buyers, “we went in completely financially hedged,” he says, adding that Thomson worked on tax planning for the cash and stock deal for two years.
(Source:
Financial Times,
Dec. 29, 2009.)
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