Signs of the Times

Three months after British media company Pearson reportedly started testing the waters for a possible sale of its flagship newspaper, the Financial Times, the company’s advisers have come all the way to China in their search for potential buyers.

But a Chinese buyer is highly unlikely to make a bid for the storied newspaper, mostly for political reasons, according to a well-placed person at one of the media groups that was approached.

Perhaps most intriguing is the fact that Pearson may even consider selling one of its crown jewels to a Chinese buyer at all, which perhaps reflects just how difficult the market has become for print publications that once ruled the global media market.

That Pearson’s advisers are looking in China also highlights the fact that the Chinese media is relatively cash-rich, since many of the biggest media groups have near-monopoly status in their markets and often have diverse holdings that run from print to broadcasting to new media.

The quest by Pearson’s advisers reflects the broader ambitions of Chinese companies, which lately have been trying to become more global as Beijing seeks to build a stable of world-class firms that can compete around the world.

Outward-looking Chinese firms have seized on lingering effects of the global financial crisis to pick up global assets from cash-strapped owners at bargain prices, making major purchases in sectors such as energy and food.