Reed Elsevier (NYSE: RUK), the Anglo-Dutch B2B media giant, which just announced a $4.1 billion acquisition and its 2007 results, also dropped another big one: it is going to sell off its Reed Business Information arm, “reducing exposure to advertising markets and cyclicality”. RBI owns some big brands such as Variety, New Scientist, Publishers Weekly, Broadcasting & Cable, Multichannel News and other publications spanning media, construction, financial, science and many other B2B markets. It has divisions in US, UK, Netherlands, France, Australia and other countries.
The Reed Exhibitions business will be retained.
According to Sir Crispin Davis, CEO of Reed Elsevier, “RBI is a well-managed high quality business as evidenced by the success of its online growth and the control of costs. Its advertising revenue model and the inherent cyclicality fit less well however with the subscription-based information and workflow solutions focus of Reed Elsevier