• by Wayne Friedman , June 14, 2011

Looking to focus on its core brands -- which include financial services and stock market data -- McGraw-Hill Companies is planning to sell its broadcasting business.  

The company, best known for its Standard & Poor's ratings service and for educational products, hired Morgan Stanley to assist in the sale of four ABC affiliates and five Azteca America stations, which pull in some $100 million in annual revenues.

Those revenues represent a little over 1% of McGraw-Hill's overall yearly revenue take.

According to SNL Kagan, results for the average TV station selling cash-flow multiples through the first quarter of this year have ranged from 9.9 times cash flow for the top 25 markets to 7.7 times cash flow for markets 26-75.

McGraw-Hill CEO Harold McGraw said the company wanted to focus on "high-growth global brands and businesses." The company's stock was up 2% in midday trading to over $41. In 2009, McGraw Hill sold its BusinessWeek operation to Bloomberg.

The ABC stations include affiliates in Denver (KMGH), San Diego (KGTV), Bakersfield, Calif. (KERO), Indianapolis (WRTV) and Azteca America affiliates in Denver, Fort Collins, Colorado Springs, San Diego and Bakersfield.

As with other TV groups, McGraw-Hill had a major recovery in 2010, coming after a crushing 2009 recessionary market. The TV stations improved 18% in revenues from the year before.

McGraw-Hill's earnings recently grew as a result of Standard & Poor's ratings business and the newly created McGraw-Hill Financial arm, which provides market data and receives royalties from trades based on benchmark indices. Its educational publications have had weak results due to slowing state educational budgets.