As part of a three-part “Growth and Value Plan,” the McGraw-Hill Board of Directors voted to divide McGraw-Hill into two companies. McGraw-Hill Markets will handle the company’s work with capital and commodities markets, and McGraw-Hill Education be dedicated to education services and digital learning.
The education company predicts revenues of $2.4 billion this year. In the video embedded above, CEO Terry McGraw explained the dramatic change in a company-produced video.
Here’s more about the education company, from the release: “As an independent education company, it will be able to optimize its solid cash generation capabilities and strong balance sheet to pursue accelerated growth strategies and augment its organic growth with digital services and/or via acquisitions or strategic partnerships. For example, it will have greater flexibility to develop and deploy new products and services to address secular trends toward digital education platforms and to pursue higher-margin opportunities in educational services such as online instructional and school digital services.”