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7/31/2015

Topic Reading-Vol.1206-7/31/2015

Dear MEL School’s Topic Readers,
FT's new owner Nikkei eyes digital success
Buying a foreign newspaper at a three-time higher than the book value sounds like a bold move. Whether it is a sound investment or senseless extravaganza remains to be seen in the next few years.
Nikkei paid a staggering $1.3bn tag to acquire the full stake of the Financial Times, a prestigious English economic paper. The CEO of the Japanese newspaper said it is the FT's digital success that Nikkei wants to follow in footsteps. Indeed, the over-a-century-old newspaper company has made success in digital subscription model, which now derives as much as 70% of its revenue from its online and mobile subscribers.
The real question seems like not the price being paid but the value to be created.
Enjoy reading and learning about this recent take-over by Nikkei.

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