Open Markets: U.S. Enforcers Must Block the McGraw-Hill/Cengage Mega-Merger
May 2, 2019
Washington, D.C. — The Wall Street Journal reported yesterday that textbook publisher McGraw-Hill Education Inc. plans to merge with its rival Cengage Learning Holdings II Inc. If approved, the merger would create the second-largest U.S. provider of textbooks and higher-education materials after Pearson with $3.16 billion in annual revenue.
Open Markets calls on America’s antitrust enforcers to block this merger. American students already pay outrageous prices for textbooks. According to a report by NBC, textbook costs have risen at three times the rate of inflation since the 1970s, or more than 1,000 percent in all. The mega-merger of McGraw-Hill and Cengage will not lower costs for students, but will almost definitely result in higher prices. This comes at a time when millions of American students are already burdened with massive student debts.
“This deal is bad for students, bad for teachers, bad for schools, bad for textbook authors, and bad for other publishers,” Open Markets Executive Director Barry Lynn said. “America’s law enforcers should understand that the public interest here is absolutely clear – block this merger and restore constructive competition throughout the entire textbook industry.”
Press Contact: Stella Roque at Open Markets Institute, [email protected]