Cengage and McGraw-Hill are joining to create a new global learning company to provide students with more affordable access to superior course materials and platforms. The new company will positively impact the lives of millions of students globally and will accelerate and expand affordability initiatives for college students in the U.S.
Accelerating Affordability for College Students
Annual student spending on course materials has declined significantly over the last decade.
Source: National Association of College Stores. (2019). Student WatchTM Attitudes & Behaviors toward Course Materials 2018-2019 Report.
More options, not fewer
The sources of higher education content, and the means of distributing that content, have expanded significantly over the last ten years. Given the increasing number of alternatives available to faculty and students, the companies estimate that the merged company would account for only 18% of all student course material decisions. This is because: (1) Cengage and McGraw-Hill together account for no more than 30% of higher education adoptions; and (2) even in those courses where the companies’ materials have been adopted, students often turn to a variety of alternatives including, used, rental, counterfeit/pirated, and instructor-generated materials.
Just as today’s college students have changed over the last decade, so has college textbook publishing. Students and faculty have more options for course materials than ever before, including new and legacy publishers, Open Educational Resources (OER), used, rental and those from our companies. When considered in this context, the reality is that the estimated share of the merged company only represents about 18% of all student course material decisions.
– Michael Hansen, CEO, Cengage
A Message from Simon and Michael
We’re excited to announce the merger of McGraw-Hill and Cengage. This new global learning company will deliver superior experiences and greater value for students, educators, and professionals worldwide.
The combined company will help accelerate innovation and accessibility, offering seamless integration across our range of learning sciences, adaptive solutions, and learning tools – like McGraw-Hill’s ALEKS and Connect, and Cengage MindTap and WebAssign.
We will strengthen our commitment to offering more affordable options for college students in the U.S. Both Cengage and McGraw-Hill have a track record of pioneering new initiatives to provide value for money, including the Cengage Unlimited subscription and McGraw-Hill’s Inclusive Access program. Together, these programs saved students $195 million in the 2019 academic year.
McGraw-Hill and Cengage have complementary missions, capabilities and talent. Together, we will be even better positioned to create new, locally impactful products that use leading educational technology to improve learning experiences and outcomes.
We look forward to this journey ahead and what we will be able to do for millions of learners, one student at a time.
Interim CEO, McGraw-Hill
News & Resources
Frequently Asked Questions
This merger will enable the combined company to provide students, educators, and academic institutions with more affordable access to superior course materials and platforms.
Together, we will continue to drive down costs for students and provide greater access to state-of-the-art digital learning tools and content that will ensure a better learning experience for all.
Key benefits include:
- Expanding access to best-in-class content;
- Enhancing learning experiences through proven digital platforms;
- Strengthening commitment to more affordable options; and
- Delivering superior experience and value.
Students will gain access to a broader portfolio of high-quality learning materials and technology platforms at more affordable prices.
The combined company will accelerate its affordability initiatives for college students across the U.S. such as Inclusive Access, Cengage Unlimited and rental programs.
With a focus on best-in-class content, proven digital platforms and affordability, the new company will be well positioned to deliver superior learning experiences at greater value for students and educators.
No. Industry data show that there has been a significant and steady decline in student spending on course materials over the last decade.
The latest Student Watch survey from the National Association of College Stores, which surveyed more than 20,000 students across 41 institutions, showed there was a decline in student spending on course materials to $415 in the 2018-2019 academic year. This is a $69 decline (or 14%) from $484 in the 2017-2018 academic year, and down from $701 in 2008.
The latest CPI data from the Bureau of Labor Statistics shows that textbook prices have fallen by 2.15% over the last 12 months through June following an annual decrease of 4% (or -4%) from the previous month. According to Professor Mark Perry of the University of Michigan-Flint, these are the “two largest annual percentage declines in the history of the series going back to 1967.”