Pearson buys macroeconomic intelligence firm Medley Global Advisors

Posted by Savita Sauvin on February 4, 2010 at 3:59 PM

UK publisher Pearson PLC announced Wednesday it has bought Medley Global Advisors, which advises hedge funds, investment banks and asset managers, as it aims to focus on subscriptions over advertising, Reuters reported.

Pearson, which publishes the Financial Times, is looking to diversify its business model. In 2008, it bought an online news and discussion service aimed at fund managers called Money-Media, for example. It has also bought several data providers, such as MergerMarket, to cut down on reliance on print and advertising for revenues, according to the Daily Mail.

Neither company provided details on the size of the deal. According to a statement in the Financial Times, the group said MGA specialises in macroeconomic policy commentary, particularly focusing on interest rates, money supply movements and government policy. It is believed to have "a blue-chip client base made up of major investors and policymakers."

"This acquisition delivers another premium service to an important FT audience and reinforces our strategy of building strong subscriber and digital businesses in core sectors," said John Riding, chief executive of the FT, according to a press release. "MGA holds a unique position at the crossroads of the policy world and financial markets, combining primary research with direct access to policymakers to deliver breaking news and deep insights."

Adding MGA to the FT's list of offerings gives MGA a way to expand into Europe and Asia, while MGA's U.S. presence can also help the FT, according to the Wall Street Journal.

Pearson also publishes FTfm, a weekly review of the fund-management industry, and owns a 50 percent stake in The Economist.