NEW YORK, Sept. 12 (UPI) — New York publishing giant McGraw-Hill said Monday it would split into two independent companies — one focused on markets and the other on education.
McGraw-Hill, which divested itself of broadcasting assets this summer, said one company would operate Standard & Poor’s — both the index and the credit rating services — plus two research firms, J.D. Power and Associates and Platts, which researches the energy industry.
The other company will operate McGraw-Hill’s educational business, including textbook publishing, The New York Times reported Monday.
“After thorough analysis, the board determined that the creation of these two independent companies is the best and most reliable way to generate superior shareholder value,” Chairman and Chief Executive Officer Harold McGraw III said in a statement Monday.
“Because both companies will be sharply defined, they will create two pure-play investment opportunities and present a more transparent capital markets profile, enabling investors to better assess their value, performance and potential,” he said.
The Times said the market-oriented business is expected to have $4 billion revenue in 2011.
McGraw-Hill Education is expected to generate revenue of $2.4 billion for 2011.