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Martin Peers of Reuters reported today that Viacom is close to hiring Morgan Stanley to take care of the sale of Simon & Schuster -- most likely to be in balkanized form.

The piece ended on an interesting note comparing the valuations of consumer v. educational publishing:

<<More likely, bankers say, is that the educational and consumer publishing units would be divided and sold separately. Either one could be wrapped together
with the smaller professional publishing unit, bankers said.

Separating the assets may also make more sense because educational publishing is perceived as being more valuable than consumer publishing. Montgomery
Securities analyst John Tinker noted in a recent report on a possible sale that while "traditional publishing" was currently valued at about 10 times earnings
before interest, taxes, depreciation and amortization, "educational assets, particularly computer-based, are currently receiving high multiples implying a
significant premium to the $4 billion" total. >>

--Gabrielle
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