McGraw-Hill sets plan to split into 2 companies
NEW YORK (AP) — McGraw-Hill Cos., which has been reviewing its businesses, will split up into two companies with one focused on education and the other on capital and commodities markets.
The move comes as investors have pushing the New York company to boost the company's stock price, which has dropped by more than 40 percent since 2006.
McGraw-Hill, which owns Standard & Poor's credit ratings, also will accelerate share buybacks to a total of $1 billion for 2011. It has bought back about half that amount to date.
McGraw-Hill Education will be the new company focused on education services and digital learning, while McGraw-Hill Markets will retain S&P and J.D. Power and Associates, a market research company.
Terry McGraw, chairman, president and CEO of the company, will lead the Markets business. A search has begun for a leader of the Education business