BusinessWeek Sale Gives McGraw Hill $5.9 Million After Taxes
- Saturday, October 31, 2009, 13:21
- Sci-Tech
- 8 comments
In McGraw Hill’s earnings release, the company said the sale of BusinessWeek will be worth $9.3 million pre-tax and $5.9 million after-tax, giving the company a $0.02 gain per share in the next quarter.
The early reporting coming out of BusinessWeek on the transaction said the price was $2 million-$5 million in cash, with the assumption of liabilities. We’re not sure how that translates into $9.3 million pre-tax, but we’ll listen to the call to see if they add any more color.
In the release, McGraw Hill noted ad pages in BusinessWeek fell 29.3% during the quarter.
Overall, the quarter was less than stellar. EPS of $1.07, was basically in line with estimates of $1.05. Revenue was $1.88 billion, missing estimates of $1.94 billion. Both of those were down year over year.
From the call, here’s some more color on the deal:
Now I’d like to update you on the pending divestiture of BusinessWeek. On October 13 we signed an agreement to sell BusinessWeek to Bloomberg. We will receive $5 million in cash and Bloomberg will assume certain liabilities including our unfulfilled subscription liabilities. The transaction is expected to close in the fourth quarter of this year. We will recognize a $9.3 million pre-tax or $5.9 million post-tax gain or approximately $0.02 per diluted share. Given the timing of the transaction we expect minimal financial impact in 2009 from operations.
In 2010 the divestiture will reduce year over year revenue growth by approximately $100 million. We expect to realize savings next year of approximately $20 to $25 million pre-tax or $0.04 to $0.05 per diluted share. This is net of the portion of allocated expenses such as shared services and rent that will no longer be absorbed. Savings could vary depending upon the length of the transition services with Bloomberg as well as the ability to consolidate or sub-lease space.
The divestiture will reduce our dependence on advertising revenue. Following the divestiture of BusinessWeek advertising will represent about 2% of pro-forma total revenue versus approximately 4% previously. - Businessinsider
8 Comments on “BusinessWeek Sale Gives McGraw Hill $5.9 Million After Taxes”
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Do you think elbow strikes are overrated? Is it as effective as the palm-heel strike to the face? Which is going to be more effective each time but i do know the elbow is very bony and it hurts when you hit some one with it, just be careful not to hit your funny bone or you will feel it too. Thanks for the well thought out post.
Do you think elbow strikes are overrated? Is it as effective as the palm-heel strike to the face? Which is going to be more effective each time but i do know the elbow is very bony and it hurts when you hit some one with it, just be careful not to hit your funny bone or you will feel it too. Thanks for the well thought out post.
Excellent work. I often wonder if the old masters of martial arts were as wise as some people make them out to be, but in my time, I’ve come across things I can’t explain, so I suppose wisdom isn’t something easily acquired. Thanks for the food for thought!
Have you looked into the non-traditional forms of striking, such as hammer fists and elbow strikes? I often suspect these moves are more ‘natural’ than the ones often espoused by modern boxers and mma participants. Anyway, thanks for giving me something to think about.
Nice post, I’ve got to say I agree with most of it.
Many today’s practicioners of fighting arts learn or teach that outfighting (such as boxing or kickboxing) is less than effective against anyone with a bit of skill in grappling or wrestling.
That’s why clinching moves like elbow strikes are so important – they’re a middle ground between boxing and full-scale grappling, wrestling, or clinch techniques.
But mostly what I figured out from this page is that I need more practice. Thanks for writing good articles.
I appreciate the time it took you to put this information together, thanks!
This is one of the best blog posts I’ve ever read. I almost fell over when I read it. Thanks!
I appreciate the time it took you to put this information together, thanks!