McGraw-Hill has retained Morgan Stanley "to pursue the divestiture of its Broadcasting Group," the company said in a statement. McGraw-Hill's four stations "are in desirable markets and should be attractive to strategic and financial buyers with a focus on media," said the company.
The Broadcasting group had revenues of almost $100 million in 2010 and includes ABC affiliates KMGH Denver, KGTV San Diego, KERO Bakersfield and WRTV Indianapolis, along with Azteca America affiliates in Denver, Fort Collins, Colorado Springs, San Diego and Bakersfield.
In its analysis of station group performance in the first quarter, the investment bank M.C. Alcamo & Co. showed McGraw-Hill to have the largest revenue increase over the previous year's first quarter, at 10.2%.
"McGraw-Hill has successfully evolved its business mix over the years and is committed to driving superior shareholder value by focusing on high-growth global brands and businesses," said Harold McGraw III, chairman, president and CEO.
McGraw-Hill said the planned divestiture is part of a "continuing portfolio review" the company is undertaking "to reevaluate its strategic core and ensure it is appropriately allocating capital to generate shareholder value. The company is also evaluating G&A costs across the corporation to ensure it continues to support its businesses efficiently."