Rothschild family sells 27% stake in The Economist to Canadian billionaire
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British philanthropist and investor Lynn Forester de Rothschild has sold her family's entire 26.9% stake in The Economist to Canadian billionaire Stephen Smith and his family holding company, Axios has confirmed.
Why it matters: It marks the biggest ownership shake-up for the 183-year-old publication in a decade.
- Pearson, a British education publisher, sold the majority of its 50% stake in the publication in 2015 to Exor, the holding group of the wealthy Italian Agnelli family, for £469 million, or $531 million.
- The Economist reacquired the rest of Pearson's shares for £182 million, or $206 million. Today, Exor holds a roughly 43.4% stake in the company. Other shareholders, including The Economist Group itself, own 29.9%.
Zoom in: As part of the deal, Forester de Rothschild and her family will give up their 20% ownership of voting shares, which is the cap for any single owner in the business.
- While financial terms weren't disclosed, Axios previously reported that the sellers were hoping the family's full stake would be valued at up to £400 million, or $537 million.
- A spokesperson for The Economist confirmed the deal agreement had been reached.
Between the lines: Smith made his fortune co-founding mortgage lender First National Financial in 1988 and has since invested in other mortgage lending businesses.
- In a statement, a spokesperson from his firm Smith Financial said the investment "reflects Mr. Smith's full support for The Economist's long‑standing tradition of rigorous editorial independence and will see The Economist's strategy and operations continue unaffected."
Zoom out: The Economist Group is considered one of the most prestigious independent business publishers in the world.
- The company now has 1.25 million subscribers, 66% of which are digital only. That's up from 1.1 million subscribers in 2021, but at that time, only 44% were digital only.
- In its latest public earnings report, the company reported annual revenue of roughly £369 million, or $495 million, and a profit margin of roughly 17%.
The big picture: The sale is the latest in a string of recent deal activity for U.K.-based publications.
- Axel Springer, the German parent to Politico and Business Insider, announced a £575 million cash deal to acquire The Telegraph earlier this month.
- British hedge fund manager Paul Marshall acquired The Spectator in 2024 for £100 million.
