Thomson President and CEO Richard Harrington opened his keynote at SIIA’s Summit in New York Jan.31 by noting that Consultant Lee Greenhouse praised him as “the best newspaper guy I know. You got out of it.”
Indeed, Thomson bailed out of the newspaper industry in 2000, selling 150 daily and community papers at a peak price of $3.5 billion. “In 2000, newspapers were going into a seven year cycle,” he said. “I don’t know if they’ll come out of it. But people aren’t betting on it.”
The sale was accompanied by the sale of Thomson’s travel business. Summing up the divestiture of two core businesses, Harrington noted: “We did not see how they would be sustainable businesses. We chose to go after high-end knowledge workers.”
Today, Thomson is the second largest information company (after Reed Elsevier) with 2005 revenues estimated by Outsell Inc. at $8.81 billion – more than $2.58 billion bigger than Gannett. More than 70 percent of its revenues come from electronic services. More than half are on the service side.