After a series of false starts beginning in late 2022, McGraw Hill’s private equity owner Platinum Equity is moving forward with an IPO of the education company. They intend to offer 24.4 million shares of common stock at an expected range of between $19 and $22 per share, estimated to raise net proceeds of $467 million at the middle of that range. That cash will be used to pay down a portion of their considerable debt, leaving the company with approximately $643 million of borrowings. In truth, a version of McGraw Hill has been looking for an IPO ever since […]
Education
Inclusive Access Textbook Programs Save Money and Help Educate, Research Finds
An independent research analysis commissioned from Tyton Partners by the AAP finds that digital “inclusive access” programs that provide college students with all required textbooks at the beginning of the semester “save students money and produce positive learning outcomes.” They find that the average price for the packaged materials was 36 percent below the average list price, and the programs have left the cost of course of materials at just above flat over the last decade. Additionally, “Most higher-education stakeholders—administrators, faculty, and students—favorably perceive their affordable-access models. Administrators’ top reasons for embracing IA and EA models are reducing costs for […]
DOE Allows Digital Textbook “Inclusive Access” Programs to Remain Opt-Out
The US Department of Education has terminated a rulemaking process that would have converted “inclusive access” programs, in which colleges charge students for digital course materials at the beginning of the semester as part of their tuition and other fees, from opt-out to opt-in. That change, if executed, would have significantly reduced participation, and therefore sales. Inclusive access purports to give students the best price for the bundled courseware, along with some kind of ability to opt out of the package. In a report published December 26, the DOE wrote, “We are persuaded by concerns raised…about the need to gather […]
Academic Publishers Sue Google Over Advertising of Pirated Textbooks
Cengage, Macmillan Learning, McGraw Hill, and Elsevier filed a lawsuit against Google on Wednesday in the US District Court for the Southern District of New York, alleging that the search engine prioritizes pirated textbooks through “systemic and pervasive advertising” instead of legitimate e-versions. The lawsuit states that the companies have been filing copyright infringement notices with Google since 2021, but that their efforts have been ignored. They allege that the search engine is profiting off the ads for the pirated books, while rejecting ebook ads for “legitimate sellers.” “Google has continued to advertise infringing works while simultaneously restricting ads for authentic educational works—supporting […]
PRH Extends Pandemic “Open License” Initiative Through the School Year; Will Replace with New Initiative
Penguin Random House has extended their pandemic-driven “open license” for online story time and classroom read-aloud videos and live events through the current school year, until June 30, 2023. At the same time, they underscore, this “will be the publisher’s final extension of the program.” They note, “Fortunately, as an ever-increasing majority of libraries, schools, bookstores, and other institutions open for in-person events, this temporary program has met its original goal to help ease some of the effort for educators and librarians and will be concluded.” A new policy will be launched on July 1, “to better serve students, educators […]
Educational Publishers Settle Shopify Piracy Lawsuit
Five educational publishers–Macmillan Learning, Cengage Learning, Elsevier, McGraw Hill, and Pearson Education–have settled a lawsuit accusing e-commerce platform Shopify of allowing textbook piracy, Reuters reports. In a joint filing, both parties requested that the case be dismissed with prejudice so it cannot be filed again, and said that each will “bear their own fees and costs.” Representatives from the publishers and Shopify told Reuters that the case was resolved “amicably” and the settlement terms were not disclosed. The publishers brought the suit against Shopify last year, accusing the company of turning a “blind eye” to users selling pirated textbooks. They […]