US media conglomerate McGraw-Hill announced Monday it was splitting into two distinct companies, spinning off controversial rating agency Standard & Poor's into a separate business. The move aims to better tap the value of the company's two key wings: publishing, mainly education materials, under one roof; and market information, with S&P, market analytics, and oil specialist Platts all under another.
The two "pure-play" companies would have the size, efficiency, and capital and cost structures "to fully leverage their world-class franchises, iconic brands, and leading market positions," McGraw-Hill said in a statement. The analytical wing will be McGraw-Hill Markets, led by Terry McGraw, currently the McGraw-Hill chairman, president and chief executive.
The businesses involved in McGraw-Hill markets will have revenues of about $4 billion this year, 40 percent from abroad, according to the statement. The education publishing arm will be turned into McGraw-Hill Education, with projected revenues of $2.4 billion in 2011.
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