McGraw-Hill Sells Educational Unit for $2.5 Billion
Nov
26

McGraw-Hill Sells Educational Unit for $2.5 Billion

By

McGraw-Hill has sold the educational aspect of the business to Apollo Global Management for $2.5 billion dollars. McGraw-Hill, based out of New York, is the second-largest educational publisher in the world, selling textbooks and e-textbooks for elementary, high school, and university students.

This was a great time for McGraw-Hill to get out of the educational market. The company has suffered in the last year due to spending cutbacks from schools that served as its primary revenue stream. McGraw-Hill has not even formulated a cohesive digital strategy to sell e-textbooks. Most major publishers are seeing a 20% increase in digital books every quarter and it is simply beyond the scope of the old guard running the company.

After all’s said and done, McGraw-Hill will capture $1.9 billion dollars after taxes and other fees. The company initially talked about selling the textbook division back in 2011, but has only now found a suitable buyer.

Michael Kozlowski (4446 Posts)

Michael Kozlowski is the Editor in Chief of Good e-Reader. He has been writing about electronic readers and technology for the last four years. His articles have been picked up by major and local news sources and websites such as the Huffington Post, CNET and more. Michael frequently travels to international events such as IFA, Computex, CES, Book Expo and a myriad of others. If you have any questions about any of his articles, please send an email to michael@goodereader.com


Categories : Business News
  • SM

    McGraw-Hill Education does not only publish textbooks. Underneath the McGraw-Hill Education umbrella is McGraw-Hill Professional which publishes professional computer, medical, engineering books, etc. Today, why does everyone seem to refer to McGraw-Hill as a textbook publishing company?  It would be like calling Disney a movie producing company.