New chapter: News Corp to buy Houghton Mifflin unit for $349M

Houghton Mifflin, which has struggled financially for years, says it will use some of the proceeds from the sale of HMH Books & Media to pay down debt. The deal is expected to close in the second quarter of 2021.

Houghton Mifflin Harcourt is selling HMH Books & Media, which includes titles by JRR Tolkien and the Curious George children’s series, to News Corp’s HarperCollins division for $349m. The deal comes as the publishing industry reshapes itself through consolidation and follows German media giant Bertelsmann’s purchase of rival Simon & Schuster in November. Houghton Mifflin said the sale will allow it to focus on its K-12 education business, with schools re-opening as the coronavirus pandemic appears to be winding down. Houghton Mifflin, which says it serves 90 percent of United States schools and calls itself the largest K-12 education technology company in the US, will also put more emphasis on digital sales.