The Australian Competition & Consumer Commission (ACCC) released a 17-page statement of issues regarding the planned merger of Cengage and McGraw-Hill, the result of a review begun in September. The report outlines two primary “preliminary concerns”: First, that the merger will result in “higher prices, reduced quality or a more limited product range for students…
Education
College Store Trade Group Tells Cengage It Opposes the McGraw-Hill Merger, But Hasn’t Yet Told the DOJ
The College Store Trade Group has expressed opposition to the Cengage/McGraw-Hill merger, according to a letter obtained by the Capitol Forum. Previously, the Trade Group, which represents more than 3,000 college bookstores, had told the DOJ it was neutral on the merger. That position apparently changed when Cengage informed bookstores that it was revising its…
Q3 Sales and Income Down at McGraw-Hill, Despite Digital Growth
McGraw-Hill reported earnings for the period ending September 30, with sales of $542.6 million, down from $552.1 million. Net income also fell slightly, down $2.2 million to $53.4 million. Meanwhile, the company’s preferred, non-GAAP measure of profit, adjusted EBITDA, was up slightly, to $371.7 million from $368.2 million. Higher ed sales of $189 million were…
New Investor Eyes Barnes & Noble Education
Between late August and mid-October, James Barnes at BBA Holding Corp. built a position in Barnes & Noble Education, now at 5.07 percent of shares and thus requiring reporting to the SEC in a form 13D. Barnes controls approximately 2.4 million shares of the underperforming campus bookseller — and he also sold short puts on…
People, Etc.
Author Christopher Beha was promoted to editor of Harper’s Magazine. He succeeds James Marcus, who was fired in April 2018 for opposing a controversial cover story by Katie Roiphe about the “Sh—y Media Men” list. Selected by publisher Rick MacArthur, Beha said, “Rick and I tried to be very clear about what our expectations for…
AAP Trade Stats Decline In August, with Big Drop In Higher Ed
As often happens, following positive statistics for July, the AAP’s monthly StatShot report shows declines in August, particularly for adult trade books. Yet again, the final adult trade comparison data from 2018 was revised, so comparisons are difficult. Adult trade sales were $407 million — down from $440 million a year ago (itself a revision…