Economist stake put up for sale as publisher posts revenue and profit growth

The Economist has reported a solid first half to the financial year while expressions of interest are gathered for the Rothschild family’s 27% stake in the company, as reported by Press Gazette. The potential transaction would mark the most significant ownership shift at the title since Pearson exited a decade ago.

Key Points from Press Gazette’s Coverage

• Philanthropist Lynn Forester de Rothschild has put the family’s stake up for sale, with Reuters reporting that “at least a dozen parties” have shown early interest ahead of Friday’s deadline.

• The current stake comprises ordinary shares and A shares and is the only holding large enough to propose two non-executive directors to the board, according to The Times.

• The Economist’s ownership structure prevents any shareholder from gaining a controlling stake or exercising more than 20% of voting rights, a system designed to safeguard editorial independence.

• Half-year revenue rose 4% to £170.3 million, or 7% at constant currency, while profit before tax increased 28% to £19.7 million.

• Subscriptions grew 6% year on year to 1.255 million, with gains across both consumer and enterprise segments.

• Chair Paul Deighton said the publisher has “reasons to be optimistic – and grounds for caution”, pointing to continued uncertainty in B2B markets and headwinds in branded content partnerships.

• Partnership solutions and events arm Economist Impact saw “particularly sharp” pressure as clients reduced appetite for policy and branded content work, resulting in 21 job losses.

Analysis

This development underscores a moment of strategic tension for The Economist. On one hand, the group continues to deliver stable subscription-led growth and rising profitability, confirming the resilience of its brand and reader revenue model. On the other, the impending sale of a structurally important minority stake introduces potential shifts in governance dynamics, even within an ownership system carefully engineered to limit influence.

The renewed interest from wealthy individuals and media companies aligns with a broader pattern in premium news assets, where scarcity, brand prestige and predictable subscription income make such holdings attractive. Yet The Economist’s constitution sharply constrains the strategic latitude of any incoming investor. This may temper bids but also ensures continuity for the editorial mission, which remains central to the brand’s value.

The performance divergence within the group is also notable. Consumer subscriptions continue to rise, revealing strong demand for premium analysis, while B2B units face cyclical pressure as corporate spending on policy, branded content and research softens. This reflects a wider industry challenge. Many publishers with mixed consumer and B2B portfolios are seeing robust reader revenue offset by volatility in commercial-facing divisions.

Looking ahead, two credible scenarios emerge. One is that the sale proceeds smoothly, bringing in a long-term, low-intervention investor aligned with The Economist’s governance culture while the group continues to invest in product innovation, AI-led efficiencies and deeper market penetration in the US and UK. Another is that heightened buyer competition pushes valuations upwards, potentially testing the boundaries of the ownership model and prompting internal debate about the balance between capital needs and institutional safeguards. How the board navigates these tensions will help define the title’s strategic trajectory for the next decade.