Houghton Mifflin Harcourt (NASDAQ:HMHC) is a global learning company dedicated to changing people’s lives by fostering passionate, curious learners. -- Business WireIf you are wondering about how Common Core curriculum decisions are made and how agendas are set, this news might interest you.
A major portion of Scholastic Corp.'s educational technology and services business will be purchased by Houghton Mifflin Harcourt for $575 million in cash, in an agreement Scholastic announced today.
Scholastic's ed-tech business has been operating at a loss. In the last quarter reported, the company's ed-tech revenue declined 4 percent, to $34.3 million, while Scholastic's overall sales increased 2 percent in that quarter, according to results announced by the company on March 26. The ed-tech segment's operating loss increased by $1.7 million to a loss of $12.4 million, compared to an operating loss of $10.7 million in the prior year.
The company attributed the decline mostly to lower math product sales and lower consulting revenues in its International Center for Leadership in Education unit. Sales of core literacy publishing product were essentially flat compared to the prior year; however, both new business and expansion sales of READ 180® stages, along with technology support services, were higher in the current quarter as compared to the prior year period, the company said.Boston-based Houghton Mifflin Harcourt is buying up- everything in sight related to Common Core. They've already acquired Channel One and Curiosityville. HMH is one of the biggest text/testing publishers cashing in on the booming Common Core market, along with Pearson and McGraw-Hill.
Perarson, a British conglomerate, continues to tout itself on its website as the world’s leading education company that operates in 80 countries, employs 40,000 people and generates 60 percent of its sales in North America.
Scholastic Inc., which bought the Weekly Reader from Readers Digest in 2012 only to end its publication a short time later, has been on the ropes the past few years.