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 is the Editor in Chief of Good e-Reader. He has been writing about audiobooks and e-readers for the past ten years. His articles have been picked up by major and local news sources and websites such as the CBC, CNET, Engadget, Huffington Post and the New York Times.