McGraw Hill Financial

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For the digital learning company spun off in 2013, see McGraw-Hill Education.
McGraw Hill Financial, Inc.
Type Public
Traded as NYSEMHFI
S&P 500 Component
Industry Financial Services
Founded 1917
Headquarters 1221 Avenue of the Americas
New York City, U.S., {{{location_city}}}, {{{location_country}}}
Area served Worldwide
Key people

Douglas L. Peterson
(President and CEO)

Harold McGraw III
(Chairman)
Products Publishing
Revenue Increase US$ 4.9 billion (2013)[1]
Operating income Increase US$ 1.4 billion (2013)[1]
Net income Increase US$ 1.5 billion (2013)[1]
Total assets Decrease US$ 2.9 billion (2013)[1]
Total equity Increase US$ 1.3 billion (2013)[1]
Employees 17,000 (May, 2013)[2]
Subsidiaries Standard & Poor's
J. D. Power and Associates
Platts
McGraw Hill Construction
S&P Dow Jones Indices
S&P Capital IQ[2]
Website www.mhfi.com
1221 Avenue of the Americas, the headquarters of McGraw-Hill
McGraw-Hill's 1990s logo

McGraw Hill Financial, Inc. is an American publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are financial, publishing, and business services. It is the parent company of Standard & Poor's, Platts, J.D. Power and Associates and McGraw Hill Construction, and is the majority owner of the S&P Dow Jones Indices joint venture. The company has its corporate headquarters in 1221 Avenue of the Americas, Midtown Manhattan, New York City.[3]

Corporate history[edit]

McGraw Hill Financial traces its history back to 1888 when James H. McGraw, co-founder of the company, purchased the American Journal of Railway Appliances. He continued to add further publications, eventually establishing The McGraw Publishing Company in 1899. His co-founder, John A. Hill, had also produced several technical and trade publications and in 1902 formed his own business, The Hill Publishing Company.

In 1909 both men, having known each other's interests, agreed upon an alliance and combined the book departments of their publishing companies into The McGraw-Hill Book Company. John Hill served as President, with James McGraw as Vice-President. 1917 saw the merger of the remaining parts of each business into The McGraw-Hill Publishing Company, Inc.[4] In 1986, McGraw-Hill bought out competitor The Economy Company, then the nation's largest publisher of educational material. The buyout made McGraw-Hill the largest educational publisher in the U.S.[5]

In 1979 McGraw-Hill Publishing Company purchased Byte magazine from its owner/publisher Virginia Williamson who then became a vice-president of McGraw-Hill.

McGraw-Hill Publishing Company, Inc became The McGraw-Hill Companies in 1995, as part of a corporate identity rebranding.[6][not in citation given]

In a 2007 strategy move, McGraw-Hill launched an online student study network, GradeGuru.com. This offering gave McGraw-Hill an opportunity to connect directly with its end users, the students. The site closed on April 29, 2012.

On October 3, 2011, McGraw-Hill announced it was selling its entire television station group to The E.W. Scripps Company for $212 million.[7] The sale was completed on December 30, 2011. It had been involved in broadcasting since 1972, when it purchased four television stations from a division of Time Inc.

On November 26, 2012, McGraw-Hill announced it was selling its entire education division to Apollo Global Management for $2.5 billion.[8] On March 22, 2013 it announced it had completed the sale and the proceeds were for $2.4 billion cash.[9]

On May 1, 2013, shareholders of McGraw-Hill voted to change the company's name to McGraw Hill Financial.[2]

Corporate organization[10][edit]

McGraw Hill Financial now organizes its businesses in four units, based upon the market they are involved in.

Standard & Poor's[edit]

Standard & Poor's provides independent investment research including ratings on various investment instruments.

S&P Capital IQ[edit]

A leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks, investment advisors and wealth managers, corporations and universities.

S&P Dow Jones Indices[edit]

Launched on July 2, 2012, it is the world's largest global resource for index-based concepts, data, and research. It is home to the widely tracked S&P 500 and the Dow Jones Industrial Average.[11][12]

S&P Dow Jones Indices calculates over 830,000 indices, publishes benchmarks that provide the basis for 575 ETFs globally with $387 billion in assets invested, and serves as the DNA for $1.5 trillion of the world’s indexed assets.

Commercial and Commodities Market[edit]

McGraw Hill Construction[edit]

McGraw Hill Construction Logo

McGraw Hill Construction, a division of McGraw Hill Financial, is a publisher of construction information in the United States and Canada. It publishes Architectural Record, GreenSource Magazine, Dodge Reports, Engineering News-Record (ENR), Sweets and McGraw Hill Construction Regionals.

In October 2009, Reed Construction Data, a chief competitor in the field of SaaS commercial construction data reporting, filed suit in federal court against McGraw Hill Construction, charging that the company's Dodge Report had unlawfully accessed confidential and trade secret information from Reed since 2002 by using a series of fake companies to pose as Reed customers. The lawsuit, filed in the U.S. District Court for the Southern District of New York, seeks an unspecified amount in lost profits and punitive damages, trial by jury, and injunctive relief as a result of Dodge’s misuse of proprietary construction project information, and that Dodge allegedly manipulated the information to create misleading comparisons between Dodge’s and Reed’s products and services in an effort to mislead the marketplace.[13]

McGraw-Hill Education[edit]

Main article: McGraw-Hill Education

McGraw-Hill Education is a digital learning company that provides educational content, software and services for pre-K through postgraduate education. The company also provides reference and trade publications for the medical, business and engineering professions.[14] On March 22, 2013 McGraw-Hill announced it had completed the sale of McGraw-Hill Education to investment funds affiliated with Apollo Global Management for $2.4 billion cash.[15]

Divisions of McGraw-Hill Education include:

  • McGraw-Hill Higher Education
  • McGraw-Hill School Education
  • CTB/McGraw-Hill
  • McGraw-Hill Professional
  • McGraw-Hill International

McGraw-Hill Education is also established in Asia, Australia, Canada (as McGraw Hill Ryerson) Europe, India (as Tata McGraw-Hill), and Latin America (as McGraw-Hill Interamericana).

Responding to the growing demand for technology in today’s K-12 and college classrooms, McGraw-Hill Education is transitioning from a print-based business model to one that relies on digital products sold through subscriptions and other services in the late 2000s. This shift has accelerated in recent years with an increased focus on developing adaptive learning systems that enable classroom teaching to come closer to a one-to-one student-teacher interaction. These systems achieve personalized student learning by assessing each student's skill level and using data to determine how each can progress through lessons most effectively. The company’s two flagship adaptive learning products are LearnSmart [2], available for higher education and high school students, and ALEKS [3], available for higher education and K-12 students.

McGraw-Hill Broadcasting[edit]

Presidents of the company[edit]

Acquisitions[edit]

During the course of its history, the McGraw-Hill Companies has expanded significantly through acquisition, not just within the publishing industry but also into other areas such as financial services (the purchase of Standard & Poor's in 1966) and broadcasting (the 1972 acquisition of Time-Life Broadcasting).

Date of acquisition Asset acquired Industry
1920 Newton Falls Paper Company[16] -
1928 A.W. Shaw Company[16] Publisher of magazines and textbooks
1950s Gregg Company[16] Publisher of vocational textbooks
1953 Companies of Warren C Platts, including Platts[16][17] Publisher of petroleum industry information
1961 F.W. Dodge Corporation[18] Publisher of construction industry information
1965 California Test Bureau[16] Developer of educational testing systems
1966 Standard & Poor's[18] Financial Services
1966 Shepard's Citations[19] Legal publisher
1968 National Radio Institute Correspondence School
1970 The Ryerson Press Educational and trade publishing
1972 Television Stations of Time Life Broadcasting[18] Broadcasting
1986 The Economy Company[5] Educational publishing
1996 Random House Schools and Colleges[20] Educational publishing
1996 Times Mirror Higher Education[21] Educational publishing
1997 Micropal Group Limited[21] Financial Services
1999 Appleton & Lange[22] Publisher of medical information
2000 Tribune Education, including NTC/Contemporary[23] Publisher of supplementary educational materials
2002 Open University Press University press - academic publications
2005 J.D. Power & Associates[24] Marketing information provider

Note that this list only includes acquisitions made by McGraw-Hill, not its subsidiaries. McGraw-Hill typically does not release financial information regarding its acquisitions or divestitures.

Partnerships[edit]

McGraw-Hill has partnered with five other higher-education publishers to create CourseSmart, a company developed to sell college textbooks in eTextbook format on a common platform.[25]

Books published by McGraw-Hill[edit]

2008 conference booth

McGraw-Hill maintained a general publishing division for some years, whose best known book was the (unpublished) Autobiography of Howard Hughes, a fake biography of Howard Hughes by Clifford Irving, which caused a scandal at the time.

The McGraw-Hill Building[edit]

  • The McGraw-Hill Building in New York City has received prominent attention. In April 2008, surveillance camera footage was released of Nicholas White, a production manager for BusinessWeek (then published by McGraw-Hill) who was trapped in the building's elevator for 41 hours in October 1999.[26]

Connection to the family of George W. Bush[edit]

The McGraws and the George W. Bush/George H.W. Bush family have close ties, going back generations. According to McGraw-Hill, Barbara Bush is a member of their advisory board.[27] Their California Test Bureau division has provided testing material integral to No Child Left Behind, a George W. Bush White House program.[28]

McGraw-Hill Federal Credit Union[edit]

The McGraw-Hill Federal Credit Union,[29] established in 1935, originally served employees of the McGraw-Hill companies in New York City only. The credit union moved from its location inside the McGraw-Hill building to East Windsor, New Jersey in 2005. Its accounts are insured by the National Credit Union Administration.

It provides savings, checking accounts, CDs, money-market accounts, IRAs, credit cards, auto loans, and home mortgages.

Awards[edit]

In 1999, the National Building Museum presented the McGraw-Hill Companies with its annual Honor Award for the corporation's contributions to the built environment.[30]

References[edit]

  1. ^ a b c d e "McGraw-Hill Cos.". Forbes. 
  2. ^ a b c "News Release - McGraw Hill Financial". Investor.mhfi.com. Retrieved 2013-10-30. 
  3. ^ "New York." McGraw-Hill. Retrieved on March 11, 2010.
  4. ^ "About Us: Corporate History: The Foundation". Retrieved May 26, 2007. 
  5. ^ a b Tipton, David (1986-07-03). "McGraw Hill Buying The Economy Company". The Journal Record. 
  6. ^ "About Us: Corporate History: The Information Age". Retrieved May 26, 2007. 
  7. ^ McGraw-Hill Sells TV Group To Scripps, TVNewsCheck, October 3, 2011.
  8. ^ [1], "New York Times", November 26, 2012.
  9. ^ "News Release - McGraw Hill Financial". Investor.mhfi.com. Retrieved 2013-10-30. 
  10. ^ "News Release - McGraw Hill Financial". Investor.mhfi.com. Retrieved 2013-10-30. 
  11. ^ "S&P Dow Jones Indices Wins Intellectual Property Dispute - NEW YORK, May 13, 2013 /PRNewswire/". M.prnewswire.com. 2013-05-13. Retrieved 2013-10-30. 
  12. ^ Leising, Matthew (Jul 2, 2012). "McGraw-Hill, CME Group Start S&P Dow Jones Indices Venture". Bloomberg. Retrieved 6 December 2013. 
  13. ^ "Reed Construction Data Files Corporate Espionage Lawsuit Against McGraw-Hill Construction Dodge". Reedconstructiondata.com. 2009-10-08. Retrieved 2013-10-30. 
  14. ^ "Education - The McGraw-Hill Companies". Retrieved May 26, 2007. 
  15. ^ "The McGraw-Hill Companies Completes Sale of McGraw-Hill Education to Apollo". NEW YORK: PR Newswire. March 22, 2013. Retrieved 2013-10-30. 
  16. ^ a b c d e "About Us: Corporate History: Development". Retrieved May 26, 2007. 
  17. ^ "Platts History". Retrieved May 26, 2007. [dead link]
  18. ^ a b c "About Us: Corporate History: Expansion". Retrieved May 26, 2007. 
  19. ^ "The McGraw-Hill Companies Timeline". Retrieved 2014-08-23. 
  20. ^ Edwin McDowell (September 29, 1988). "McGraw-Hill Is Buying 2 Random House Units". The New York Times. 
  21. ^ a b Iver Peterson (July 4, 1996). "Times Mirror in Two Deals To Bolster Legal Publisher". The New York Times. Retrieved September 1, 2009. 
  22. ^ "The McGraw-Hill Companies Completes Acquisition of Appleton & Lange". Retrieved May 26, 2007. 
  23. ^ "The McGraw-Hill Companies To Acquire Tribune Education; Acquisition Strengthens McGraw-Hill Education's Leadership Position". Retrieved May 26, 2007. 
  24. ^ "The McGraw-Hill Companies Completes Acquisition of J.D. Power and Associates". Retrieved May 26, 2007. 
  25. ^ "New Agreement Makes eTextbooks Available to Students". 
  26. ^ Trapped in the elevator for 41 hours on YouTube
  27. ^ "Barbara Bush". The Mcgraw-Hill Companies. 
  28. ^ "McGraw-Hill & Bush: The Graft and the Twig". School Matter. 4 August 2006. 
  29. ^ "McGraw-Hill Federal Credit Union - Home". Mcgrawhillfcu.org. Retrieved 2013-10-30. 
  30. ^ "Honor Award". National Building Museum. 

External links[edit]