Thomson Reuters Corp. (TSX:TRI)(NYSE:TRI) stock was up 8.38% at the top of the noon hour on January 30. The Toronto-based news and digital information company announced on Tuesday that it was holding discussions with Blackstone Group, a large private equity firm. A “definitive agreement” between the two had not been reached.
Thomson Reuters would reportedly maintain a significant interest in the financial and risk business, retaining full ownership of legal, tax and accounting, and news operations. The company is set to release its 2017 fourth quarter and full-year results on February 8.
In the third quarter Thomson Reuters saw its revenues rise 2% to $2.79 billion and operating profit jumped 21% to $467 million. Adjusted EBITDA rose 4% to $849 million. Revenues were up 3% and 2% respectively in the Americas and Asia, while dropping 1% in Europe. The company last delivered a dividend of $0.44 per share representing a 3% dividend yield.
Blackstone would reportedly acquire a 55% stake in the data and analytics division at Thomson Reuters. The division is currently valued at around $20 billion. Blackstone is said to be eyeing the substantial recurring subscription-based revenue that the division offers.
Thomson Reuters stock is now up 5.3% in 2018 thus far. Shares have dropped 1.6% year over year. The partnership with Blackstone could give the company a boost in its competition with Bloomberg, another news and digital information giant. Thomson Reuters solid dividend also provides justification to hold long term.
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