First came Software Toolworks, the US computer game company with whizz-bang multimedia technology for which Pearson paid more than dollars 462m earlier this year, 58 times earnings.
Now the group is off again, buying a niche computer game publisher to kick-start its nascent Pearson New Entertainment division. This is destined to carry the multimedia publishing torch in Europe, 'marketing consumer entertainment products to the 15-35 year old male market'.
Hence Pearson felt the urge to pay pounds 52.5m for a company whose earnings have declined since last year, when it both bought in some of its own shares and issued options to some of its employees at a price that valued the company at just pounds 10.6m. Overpaying. That's the Multimedia Future for you.Reuse content