McGraw-Hill has announced that it wants to divest its broadcasting group and has retained Morgan Stanley to make that happen, B&C reported. The company said in a statement that its four stations "are in desirable markets and should be attractive to strategic and financial buyers with a focus on media," the story reports.
“The Broadcasting Group had revenues of almost $100 million in 2010 and includes ABC affiliates KMGH Denver, KGTV San Diego, KERO Bakersfield and WRTV Indianapolis, along with Azteca America affiliates in Denver, Fort Collins, Colorado Springs, San Diego and Bakersfield,” the story says.
An analysis by investment bank M.C. Alcamo & Co. of first-quarter station group performance showed McGraw-Hill with the largest revenue increase over a year earlier, at 10.2%.
Said Harold McGraw III, chairman, president and CEO: "McGraw-Hill has successfully evolved its business mix over the years and is committed to driving superior shareholder value by focusing on high-growth global brands and businesses.”
B&C reported: “McGraw-Hill said the planned divestiture is part of a ‘continuing portfolio review’ the company is undertaking ‘to re-evaluate its strategic core and ensure it is appropriately allocating capital to generate shareholder value. The company is also evaluating G&A costs across the corporation to ensure it continues to support its businesses efficiently.’"