Saturday, April 10, 2021
  • Home
  • About Us
  • Contact Us
  • Cookie Policy
  • DMCA
  • Disclaimer
  • Privacy Policy
  • Terms of Use
Edu Geton
  • Home
  • University
  • Career Tips
  • Jobs
    • Teaching
    • Tutor
    • Writing
  • Online Education
    • Child Education
    • College Education
    • Distance Learning
    • Education Courses
    • Education Degree
    • Education News
    • Language Education
    • Job Education
    • Home Education
  • Educational Organisation
    • Study abroad
    • Internship
    • School
    • Exam
  • Contact Us
  • Pages
    • About Us
    • Cookie Policy
    • DMCA
    • Disclaimer
    • Privacy Policy
    • Terms of Use
No Result
View All Result
Edu Geton
  • Home
  • University
  • Career Tips
  • Jobs
    • Teaching
    • Tutor
    • Writing
  • Online Education
    • Child Education
    • College Education
    • Distance Learning
    • Education Courses
    • Education Degree
    • Education News
    • Language Education
    • Job Education
    • Home Education
  • Educational Organisation
    • Study abroad
    • Internship
    • School
    • Exam
  • Contact Us
  • Pages
    • About Us
    • Cookie Policy
    • DMCA
    • Disclaimer
    • Privacy Policy
    • Terms of Use
No Result
View All Result
Edu Geton
No Result
View All Result
Home College Education

US college education could be pricier with textbook merger

Edugeton by Edugeton
April 10, 2021
in College Education
0
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

The skyrocketing cost of a U.S. college education could get even more expensive if two top college textbook companies combine as planned, especially if they succeed in starving off a scrappy competitor: used textbooks.

US college educationThe proposed merger of textbook publishers McGraw-Hill Education Inc and Cengage Learning Holdings II Inc announced in May would reduce the number of major textbook publishers from four to three. McGraw-Hill is owned by ApolloNSE -2.36 % Global Management LLC. Sources close to the two companies say their combined market share is 30% at most. That differs from figures by market research firm Simba Information, which puts Cengage at 22% and McGraw-Hill at 21%, behind leader Pearson with 40% of the market by revenue, and ahead of Wiley at 7%.

You might also like

The Growing Partisan Divide in Views of Higher Education

Conference on Education Policy at Nagarjuna College these days in Nalgonda

Has College Gotten Too Easy?

U.S. PIRG Education Fund, a consumer advocacy group, is sending a letter to the Justice Department Monday to urge that the deal be blocked, as is a group of consumer advocates, led by Open Markets. “The merger threatens to consolidate more power in the grasp of a handful of publishers, who have used their enormous market share to drive up prices for consumers over the course of the past few decades,” said the letter signed by PIRG and some three dozen leaders of university student organizations. A spokesperson for the two companies said they were working closely with the Justice Department. “The companies remain confident that the transaction will benefit our customers,” the spokesperson said.

The deal, which would create a company worth about $5 billion, comes at a time when college textbook prices are stable or declining slightly after two decades of rising at twice the rate of inflation, according to U.S. government data. The companies have stressed the deal’s goal was to keep prices down. One option, they said, might be to put McGraw-Hill products onto Cengage Unlimited, which costs $179 annually and gives students access to all Cengage digital products. It has not said if that price will change. The industry is moving toward renting books to students rather than selling them since rented books are cheaper.

But rented books also have the advantage – to the publishers – of not ending up on the used book market. When students finish a semester, the books are returned and rented again. McGraw-Hill Chief Executive Nana Banerjee told analysts the used book market “has been a disruptor for us.” Banerjee said McGraw-Hill would transition to rent textbooks, and over four to six years, the number of used books in circulation would drop. “(This) is helping us kind of age out the books that are now in circulation,” he told analysts in May.

Experts said the impact on used book sales is likely to be scrutinized by the Justice Department. “This unguarded statement is potentially damaging to antitrust clearance of the transaction. The elimination of a disruptor is one of the major red flags looked for by antitrust regulators,” said Kevin Arquit of the law firm Kasowitz Benson Torres LLP. Cengage CEO Michael Hansen distanced himself from the effort to keep textbooks off the used book market. “I think it’s a fool’s errand to think you can stop the aftermarket,” he told Reuters in a telephone interview.
The companies said they expect the deal to close in early 2020.

TEXTBOOKS ARE CHANGING

McGraw-Hill and Cengage are also interested in expanding digital options, which are cheaper and cannot be re-sold. Pearson, the world’s biggest education company, is leaning into digital. It announced in July that it would release all titles for the U.S. college market first digitally, de-emphasizing the more expensive paper textbook.
There are other low-price options, including OpenStax, whose products are free. Jim Tierney, an antitrust expert with the law firm Orrick Herrington & Sutcliffe LLP, said that the free options were so small that the government would not consider them competitors. Rather than looking at the market as a whole, antitrust enforcers will look at segments, like Spanish I, and demand asset sales if the deal would leave a segment with too few competitors, said Seth Bloom of Bloom Strategic Counsel.

Previous Post

Child poverty coins exceeded returned to Europe unspent

Next Post

Education Is for Everyone, But College Isn’t

Edugeton

Edugeton

Organizer. Award-winning internet enthusiast. Passionate entrepreneur. Lifelong bacon guru. Fixie owner, coffee addict, drummer, Mad Men fan and front-end designer. Making at the intersection of design and purpose to save the world from bad design. German award-winning designer raised in Austria & currently living in New York City.

Related Posts

The Growing Partisan Divide in Views of Higher Education
College Education

The Growing Partisan Divide in Views of Higher Education

by Edugeton
April 6, 2021
Conference on Education Policy at Nagarjuna College these days in Nalgonda
College Education

Conference on Education Policy at Nagarjuna College these days in Nalgonda

by Edugeton
April 10, 2021
Has College Gotten Too Easy?
College Education

Has College Gotten Too Easy?

by Edugeton
April 10, 2021
College Education

by Edugeton
April 10, 2021
Kamala Harris proposes $seventy four.Five billion for black higher training and corporations
College Education

Kamala Harris proposes $seventy four.Five billion for black higher training and corporations

by Edugeton
April 10, 2021
Next Post
Education Is for Everyone, But College Isn’t

Education Is for Everyone, But College Isn’t

No Result
View All Result

Today Trending

  • 5 Tips for Starting a Successful Product Management Career

    5 Tips for Starting a Successful Product Management Career

    0 shares
    Share 0 Tweet 0
  • Mumbai Police call for Rs 1.51 crore dues from American School of Bombay

    0 shares
    Share 0 Tweet 0
  • How to Prepare for O Level and IP Chemistry Even If Your Child Has Been Failing Their Exams

    0 shares
    Share 0 Tweet 0
  • Woot Tutor Launches Math Program for 5th to twelfth Grade Students

    0 shares
    Share 0 Tweet 0
  • Don’t Leave An Internship Before Doing These four Things

    0 shares
    Share 0 Tweet 0

Latest Update

How To Save Future Read It By Go Green Essay

How To Save Future Read It By Go Green Essay

April 6, 2021
7 suggestions for purchasing off to a very good begin at your first task

7 suggestions for purchasing off to a very good begin at your first task

April 6, 2021
Tips and race-by way of-race preview of Albury on Tuesday

Tips and race-by way of-race preview of Albury on Tuesday

April 6, 2021
  • Home
  • About Us
  • Contact Us
  • Cookie Policy
  • DMCA
  • Disclaimer
  • Privacy Policy
  • Terms of Use
Mail us: [email protected]

Β© 2020 JNews - All Rights Reserved To Us

No Result
View All Result
  • Home
  • University
  • Career Tips
  • Jobs
    • Teaching
    • Tutor
    • Writing
  • Online Education
    • Child Education
    • College Education
    • Distance Learning
    • Education Courses
    • Education Degree
    • Education News
    • Language Education
    • Job Education
    • Home Education
  • Educational Organisation
    • Study abroad
    • Internship
    • School
    • Exam
  • Contact Us
  • Pages
    • About Us
    • Cookie Policy
    • DMCA
    • Disclaimer
    • Privacy Policy
    • Terms of Use

Β© 2020 JNews - All Rights Reserved To Us