×
Publishing Giant Wiley is Reorienting Itself as an AI Licensing Company
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

Wiley’s strategic shift and AI opportunities: Wiley, the global publishing company, has concluded its fiscal 2024 restructuring program and is now focusing on expanding its presence in the artificial intelligence (AI) sector.

  • The company completed its divestiture program, which involved selling three businesses and implementing layoffs, with the final two deals finalized on August 31, 2024.
  • Wiley’s restructuring aims to create a more focused and profitable company, resulting in a 6% revenue increase to $390 million and a 22% rise in adjusted EBITDA to $73 million, excluding the impact of divested companies.

AI licensing deals drive growth: Wiley has successfully implemented significant AI content licensing agreements, contributing substantially to its first-quarter fiscal 2025 performance.

  • A $23 million AI deal with an undisclosed large tech company was implemented in fiscal 2024.
  • A second agreement worth $21 million was executed in the first quarter of fiscal 2025, generating $17 million in revenue for Wiley’s learning group.
  • These AI deals were the primary factor behind the company’s 14% sales increase to $124 million in the first quarter of fiscal 2025.

Financial performance across segments: Wiley’s various business segments showed mixed results in the first quarter of fiscal 2025.

  • Excluding the AI project, overall revenue decreased by 1%, with gains in academic courseware sales offset by a moderate decline in professional publishing.
  • The research operating group, Wiley’s largest segment, saw a 3% increase in sales to $265 million, driven by growth in open access and institutional publishing.

Leadership transition and AI focus: Wiley’s new leadership is emphasizing the company’s commitment to pursuing AI opportunities and upgrading its technological capabilities.

  • Matthew Kissner, appointed as Wiley’s president and CEO in July 2024, expressed satisfaction with the company’s start to the fiscal year and readiness to “move decisively on AI opportunities.”
  • The AI licensing deals primarily involve backlist titles published at least three years ago, with tech companies showing particular interest in book content rather than research materials.
  • Wiley has established a dedicated team to evaluate AI deals that align with the company’s licensing standards.

Protecting rights and compensating authors: Wiley is taking steps to ensure that its AI initiatives respect intellectual property rights and benefit content creators.

  • The AI agreements are designed to protect all rights held by Wiley and its authors.
  • Copyright holders whose works are licensed to tech companies are compensated according to contractual terms.

Investing in the future: Wiley is allocating significant resources to enhance its technological infrastructure and prepare for future AI opportunities.

  • The company has increased its capital expenditure budget from $93 million in fiscal 2024 to $130 million for the current year.
  • This increased budget will be used to accelerate upgrades to Wiley’s research publishing platform and modernize its general infrastructure.

Potential for AI in research publishing: While current AI deals focus on book content, there is potential for expansion into research materials.

  • Kissner noted that tech companies’ interest could shift towards research content as they complete the development of their large language models and explore further applications.

Looking ahead: AI’s role in Wiley’s future: As Wiley positions itself at the intersection of publishing and technology, the company’s strategic embrace of AI licensing and infrastructure investment signals a transformative period for the traditional publishing industry.

  • The success of Wiley’s AI initiatives could pave the way for new revenue streams and business models in academic and professional publishing.
  • As AI technology evolves, Wiley’s proactive approach may allow it to maintain a competitive edge and shape the future of content distribution and consumption in the digital age.
Wiley Wraps Up Divestiture Program, Looks at AI Opportunities

Recent News

Baidu reports steepest revenue drop in 2 years amid slowdown

China's tech giant Baidu saw revenue drop 3% despite major AI investments, signaling broader challenges for the nation's technology sector amid economic headwinds.

How to manage risk in the age of AI

A conversation with Palo Alto Networks CEO about his approach to innovation as new technologies and risks emerge.

How to balance bold, responsible and successful AI deployment

Major companies are establishing AI governance structures and training programs while racing to deploy generative AI for competitive advantage.