The DOJ plans to approve the merger of Cengage and McGraw-Hill, if the companies agree to divest some overlapping assets, unnamed sources told the NY York Post. “There’s going to be a deal. The parties are doing the work so they understand the package that needs to be offered,” the source said. “Any areas of overlap,” such as business textbooks, “will have to be sold to get Justice’s stamp of approval, sources added.” A representative for the companies declined to comment on the story. According to the companies’ financials, before any divestitures the combined entity would have $3.16 billion in […]
M&A
Australian Antitrust Commission Has Some Concerns About Cengage McGraw-Hill Merger
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 in Australia”; and second, that it will “further reduce the already limited number of major publishers with whom higher education authors can publish their works.” Interested parties have until January 20 to submit comments and information, with a final decision due from the commission March […]
People, Etc.
Todd Noden has been promoted to president at Books-a-Million. He was chief operating officer and chief financial officer, and now he adds leadership of the company’s store operations group to his other responsibilities. James Meader left his position as vp, associate publisher at Picador last week and will join Vintage Anchor on December 16 as executive director of publicity and social media, reporting to Suzanne Herz. Register of Copyrights Karyn Temple will leave her position on January 3 to join the Motion Picture Association of America as global general counsel. At Scholastic Trade, Zachary Clark becomes senior editor. Rachel Matson […]
Yet Again, Springer Nature Said to Hope for An IPO
The various private equity companies that have traded educational publisher Springer for more than a decade now have hoped for an offering of shares to the public since at least 2012 if not earlier, both to help pay down a persistent debt load and to provide a pathway to an exit. The current incarnation of the company, the Springer Nature joint venture, came close to pulling it off in 2018 — but the offering on the Frankfurt Stock Exchange fell apart at the last minute. At first they reduced the share price and had 53-percent partner Holtzbrinck step in to […]
Not a Good Quarter for Cengage
Educational publisher Cengage — hoping to merge soon with McGraw-Hill if the DOJ approves the plan — continues to struggle while waiting, with revenue falling $63.9 million, down to $410.4 million, in the fiscal second quarter, ending September 30. Net income was $11.5 million, down from $34.4 million. After adjusting for currency exchange, income was even lower, down to $6.5 million from $32.7 million. The company started yet another restructuring during the quarter, “in its Learning segment to streamline operations,” which it says will allow it to make good on its full-year profit forecast. This follows an earlier, now “fully […]
Penguin Children’s Acquires Eric Carle’s Rights
Penguin Children’s announced on Tuesday that as of January 1, 2020 it will acquire Eric Carle LLC, which owns the intellectual property rights to the author and illustrator’s over 70 children’s books, as well as his licensing business. Carle, 90, has sold over 145 million copies of his books worldwide by their report (including more than 50 million copies of The Very Hungry Caterpillar alone). The acquisition was made by Penguin Random House US ceo Madeline McIntosh and Penguin Children’s president Jen Loja, and starting in January business operations for what has previously been the Eric Carle Studio will be […]