McGraw-Hill Companies, the family controlled publisher, has sold its flagship business title to Bloomberg LP for an as yet undisclosed amount.
The 121-year-old publisher has been "exploring strategic options " for Business Week since July (click here to read our coverage of the story) and announced yesterday it is to sell the title to New York-based news service Bloomberg. "We are pleased that we have reached an agreement for Business Week to be acquired by Bloomberg, which shares the same high standards for editorial independence, integrity and excellence that have long defined Business Week," said Harold McGraw III, fourth-generation chairman, president and chief executive of the McGraw-Hill Companies.
"I am very proud of the tremendous contributions Business Week has made to the McGraw-Hill Companies throughout its rich history. It is a truly outstanding franchise and the best source of business reporting in the world," he said.
The statement said the sale would allow McGraw-Hill to focus its attention on its other, larger business areas of financial services, education and business information. The company has a strong educational publishing presence and owns brands including Standard & Poor's ratings agency, Platts and JD Power and Associates.
Business Week, one of McGraw-Hill's longest running publications, has suffered from a decline in circulation and advertising affecting many weekly news magazines. It saw a 30% drop in second quarter advertising, causing a dramatic drop in profits.
Harold McGraw III is the fourth generation of the founding McGraw family to work in the business and the sixth family president. Year on year revenues for McGraw-Hill dropped from $6.8 billion in January 2008 to $6.4 billion in 2009, however the company has seen a steady rise in share prices throughout 2009.
Want to get the latest family business/family office news direct to your desktop? Click here to register to receive our weekly newsletter
Are you a member of a multigenerational family business or family office? Click here to subscribe to our magazines