logo-loader
viewRELX PLC

RELX tumbles as University of California cancels multi-million-pound academic journals subscription

It’s not the value of the contract itself that’s the issue, it’s more what University of California’s decision could mean for other institutions

books
Relx’s Elsevier business is the largest academic publisher in the world

Publishing giant RELX PLC (LON:REL) was among the biggest blue-chip losers on Friday after the University of California cancelled its multi-million-pound academic journals contract.

Relx’s Elsevier unit publishes almost half-a-million academic articles every year and UC was happy to keep paying its hefty subscription fee so it could continue to access them.

But for the same price, it also wanted Relx to distribute its authors’ work to other researchers for free, something universities would normally have to pay extra for.

Analysts said it was “no wonder” the publisher refused to give in to the demands given that it would have undermined its business model.

The number crunchers don’t expect the cancellation to affect this year’s numbers too much, but the stock fell 5.6% to 1,631p on concerns over the possible longer-term fall-out.

“How much does this encourage other universities to take a similar line?” asked City broker Liberum in a research note.

“That would presumably be the issue for Elsevier as UC's very open move could encourage others to follow suit.”

Quick facts: RELX PLC

Price: 1668 GBX

LSE:REL
Market: LSE
Market Cap: £32.22 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Crossword Cybersecurity 'cautiously optimistic' on 2020 as first half...

Crossword Cybersecurity PLC's (LON:CCS) Mary Dowd tells Proactive London's Andrew Scott they're cautiously optimistic on hitting full year targets after first half revenues to June 2020 rose 18%. The company expects to report revenues of £674,000 while it closed off the period with £1.6mln in...

6 hours, 31 minutes ago

2 min read