The sale of McGraw-Hill’s education unit to Apollo Global Management is expected to close before the end of the month now that the private equity firm has lined up financing for the acquisition. With that financing comes a slight revision of terms in which McGraw-Hill will receive more cash upon closing than planned, in exchange for what looks like a slight reduction of the selling price. The original agreement called for a price of approximately $2.5 billion, but that deal included McGraw-Hill providing $250 million of financing in the form of senior unsecured notes. But now McGraw-Hill says they will receive […]
Finance
BBC May Have Buyer for Lonely Planet
Rafat Ali’s travel site Skift reported Monday that wealthy Kentuckian Brad Kelley “is in final stages of negotiation” with the BBC to “buy a majority controlling stake in Lonely Planet.” The story says the BBC would retain “a small-but-sizable stake to help maintain editorial control through current management, as well as save on inter-country taxes.” Veering further into speculation, the piece suggests that Kelley–who made his money from cigarettes, and then became a significant land-owner and conservationist–might pay “close to $100 million” for that unspecified share of the publisher. The BBC replied to the story with a statement that is […]
Briefs: Macmillan Library Lending Begins; Scottish Publisher Mainstream To Stop Publishing New Books
As previously announced, Macmillan officially began lending digital books to libraries Friday with 1200 backlist Minotaur Books titles under a pilot program. Macmillan ebooks will be available in the one copy/one user lending model for the earlier of two years or 52 checkouts for $25 each. Scottish publisher Mainstream will cease publishing new titles by the end of 2013 after more than 35 years in business. Titles already under contract and scheduled for publication will proceed as usual through March 2014, with backlist titles to be reissued under a Random House UK-based imprint. The company’s Edinburgh offices will close on […]
Cengage Prepares for the Reckoning
Textbook giant Cengage needs to restructure their huge debt load of over $5 billion, and the company has loomed for a while now as publishing’s next big bankruptcy/restructuring. After extending maturities on various tranches of debt last year, the WSJ reports that the company “in recent weeks has held discussions with Alvarez & Marsal,” a restructuring/turnaround firm, “though no decision has been made.” Their sources indicated “no restructuring appears imminent as the company weighs options for addressing its finances.” That has been the official company line for some time; as recently as last November, CFO Dean Durbin told analysts, “I […]
European Decision on Penguin Random House Merger Due In April
The European Commission updated its very brief public case notes on the pending antitrust review of the proposed merger of Penguin and Random House. The EC website now indicates a “provisional deadline” for their review of April 5.
Riggio Offers to Buy BN Stores, Subject to Negotiation
Following advance notice Sunday night in the WSJ, early Monday morning Barnes & Noble announced that Len Riggio “notified the board…he plans to propose to purchase all of the assets of the retail business”–comprising the BN superstores, and the BN.com web site. “Riggio plans to make the proposal in order to facilitate the company’s evaluation of its previously announced review of strategic options for the separation of its investment in Nook Media.” The price is subject to negotiation with the board, and “is currently contemplated to be comprised primarily of cash consideration and the assumption of certain liabilities of the […]