Crises Engulfing Pearson Deepens, Expects Gloom in U.S.

The transcript discusses Pearson's challenges in the US higher education market, including a significant decline in textbook sales and enrollment. Leadership credibility is questioned due to repeated profit outlook changes. Pearson considers selling its stake in Penguin Random House and plans to adapt by expanding into the rental market and increasing digital offerings. The company aims to shift its US higher education business to 75% digital by 2020, amidst competition from companies like Amazon.

What was the primary reason for the decline in Pearson's share price?

• Unexpected drop in enrollments

• Increase in textbook sales

• Successful digital transformation

• Expansion into new markets

What is the estimated value of Pearson's stake in Penguin Random House?

• £1.2 billion

• £0.8 billion

• £2.5 billion

• £3.0 billion

Why is Pearson considering expanding into the rental market?

• To increase textbook sales

• To compete with companies like Amazon

• To reduce operational costs

• To focus on print media

What percentage of Pearson's US higher education business is planned to be digital by 2020?

• 50%

• 60%

• 90%

• 75%

What strategy is Pearson employing to increase digital adoption in universities?

• Offering free textbooks

• Signing up universities for digital courseware

• Focusing solely on print media

• Reducing digital content