Reed Elsevier, the Anglo-Dutch publishing giant, is to pour hundreds of millions of pounds into its internet operations in an effort to catch up with rivals.
The announcement was made by Crispin Davis, the new chief executive of Reed Elsevier. He said the company would invest an extra £200 million next year most of which will be used to develop Reed's internet business.
The announcement sparked a rise in the group's share price as the market responded warmly to Reed's decision to take the internet seriously.
However, the move is likely to see the loss of hundreds of jobs. Full details of the company's plans will be revealed when the company announces its full year results on 24 February.