FOR IMMEDIATE RELEASE
AT
MONDAY, NOVEMBER 23, 1998
(202) 616-2771
WWW.USDOJ.GOV
TDD (202) 514-1888
JUSTICE DEPARTMENT APPROVES PEARSON'S PURCHASE Divestitures of Elementary School Science Program WASHINGTON, D.C. -- The Department of Justice reached a settlement today allowing
Pearson plc and Pearson Inc. to proceed with their $4.6 billion acquisition of educational,
professional and reference publishing businesses from Viacom International Inc., after Pearson
agreed to resolve the Department's antitrust concerns by selling off an elementary school science
textbook program and textbooks in numerous college subjects. Pearson and Viacom are two of only four publishers of major comprehensive elementary
school science programs, which include textbooks and related educational materials and services.
They also are two of few publishers of textbooks and other educational materials for over thirty
college courses in which DOJ required divestitures. "Education is an important national priority, and competition is essential to ensure that
our students have the best available educational materials," said Joel I. Klein, Assistant Attorney
General of the Department's Antitrust Division. "With these divestitures, students, elementary
schools and colleges will continue to receive high quality textbooks and supporting materials at
the lowest prices, as well as continued innovation." In recent years, Pearson and Viacom have consistently led in sales of important
elementary school science programs, facing few competitors. Pearson publishes the "Discover
the Wonder" program under the Scott Foresman Science brand name, and Viacom publishes
"Discovery Works," under the brand name Silver Burdett Ginn Science. The Department alleged
that, without the divestiture of one of these textbook programs, schools likely would have faced
increased prices, lower textbook quality and less competition in the development and
improvement of science textbooks. Pearson's acquisition will also merge its significant college publishing activities with
Viacom's. To allow the acquisition to proceed, Pearson agreed to divest textbooks used in the 32
college courses in which DOJ identified competitive problems. These courses fell primarily in
the biological sciences, engineering, economics, teachers' education, mathematics, and computer
science disciplines. The Department's complaint alleges that Pearson and Viacom accounted for
a significant share of all textbook sales in each of the 32 courses. The Department filed suit in the U.S. District Court in Washington, D.C. to block the
acquisition, but at the same time filed a proposed settlement that requires Pearson to sell the
textbooks and other educational materials to one or more buyers approved by the Justice
Department. Pearson plc is headquartered in London, England. Both Pearson Inc. and Viacom are
headquartered in New York. Pearson's educational publishing activities had $924 million in
revenues in 1997. The educational publishing businesses it will acquire from Viacom generated
revenues of $1.4 billion in 1997. As required by the Tunney Act, the proposed settlement will be published in the Federal
Register, along with the Department's competitive impact statement. Any person may submit
written comments concerning the proposed decree during a 60-day comment period to M.J.
Moltenbrey, Chief, Civil Task Force, 325 Seventh Street, Suite 300, Washington, D.C. 20530.
At the conclusion of the 60-day comment period, the Court may enter the consent decree upon its
finding that it serves the public interest. ### 98-561
OF VIACOM PUBLISHING BUSINESSES
and of Textbooks in 32 College Subjects Required