McGraw Education to Split from Markets Group

The long rumored split was announced at McGraw-Hill today. The education group will operate independently of the markets division including well know brands like S&P.
Private investors (including the Ontario Teachers Pension Plan) have been pressuring the company for months and claiming that the $2.4b education division is a drag on profitability. It may be true that they have been less aggressive than Pearson but a couple of the new digital products are worth watching:

Power of U, a personalized middle grade math product built in partnership with Promethean
CINCH Science, an online curriculum with its own facebook page
Connect, a higher ed assignment/assessment management platform

McGraw also owns CTB, a leading assessment shop; SRA and the Wright Group, leaders in elementary literacy; and well know imprints including Macmillian and Glencoe.

Given the long tail of print and the uneven transition, the shift from print to digital is difficult transition to manage for content producers. If given a chance to succeed with good board and solid balance sheet, McGraw-Hill Education has solid product base to build on.

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