On the Block: Thomson Learning
Thomson Gale will be sold as part of a package
By Norman Oder -- Library Journal, 12/15/2006
Rumors that had surfaced months ago about the possible sale of Thomson Gale have proven solid, as the Thomson Corporation announced plans to reorganize and sell its Thomson Learning Division, including the Thomson Gale subsidiary.
The move could net the company $5 billion and allow it to expand its legal, financial, and scientific information business, according to the Wall Street Journal. Though Thomson Learning generated $2.3 billion in revenue and operating income last year, apparently the relatively sluggish growth of its electronic businesses—excluding Gale, which has exceeded expectations—prompted the parent company to focus on faster-growing subsidiaries.
The announcement shouldn’t change the service that libraries get, according to Thomson Gale president Gordon Macomber. “In the last several weeks, we’ve been on a concerted effort to contact our customer base,” Macomber told LJ. “What we’re hearing is positive all around.”
Sales plans
Would Thomson Gale be sold separately, given the inevitable interest from competitors such as ProQuest, EBSCO, and H.W. Wilson? Thomson has said it would sell the division as a whole, and Macomber added, “As far as I understand, Thomson wishes to sell all of Thomson Learning at one time.” Subsidiaries include Prometric, Wadsworth, and Delmar Learning.
Would this happen in the first quarter of 2007, as was initially suggested? “These time lines take their own course,” said Macomber, who added, “The first quarter sounds early, based on what’s happened historically.” He said the news hasn’t changed plans or investment or staffing patterns at Thomson Gale, which creates and maintains more than 600 databases that are published in various formats.
Its publishing imprints include Macmillan Reference USA™, Charles Scribner’s Sons®, Primary Source Microfilm™, and Scholarly Resources Inc. Major brands include InfoTrac, Gale Virtual Reference Library (the company’s ebook platform), and digital collections such as Eighteenth Century Collections Online. Thomson Gale also sponsors the annual Gale/LJ Library of the Year award.
