We know how you love the so called anonymous survey. I'm sure KT in HR would support a survey, but MH knows that it will make him look bad, so No surveys anytime soon. KT keep up the pressure maybe he will resign, so you don't have to continue babysitting him for Apollo.
31 replies (most recent on top)
@241 lol this will absolutely be a fire sale. 1% growth based off layoffs, price hikes and cost cutting measures is not growth. APAX has held Cengage for 20 years they are READY to offload.
@241 Youre in denial. Sorry but you clearly havent a clue. Your "it cant be true cause I don't want it to be" logic and befudled logic based on platitudes doenst cut through the razor sharp logic of private equity.
The company is NOT growing
The company is NOT profitable. Its ebita bump is a one off event based on massive cost cuts designed to dress up the balance sheet, but unfortunately the street wasn't fooled.
All those cost cuts will now bite hard as/plate cuts have strangled frontlist.
Resources to manage current business have been strangled.
Countless reorgs have people with little understanding trying to run the business
troubled times ahead.
I predict MH will be gone over the next 3 months
@24j oh dear oh dear. "all external reporting points to an IPO"
No it doesnt...Infact there is no external reporting since the fanfare around the confidential filing. The IPO is dead. 6 months from the confidntial filing they have to formally file or redo all the numbers. The 6 month to now has been all about lining up the underwriters, telling the story etc. Did they get anyone to buy into it? Nope. Its deadWill they announce its dead ? Nope. It will just never be spoken of again. The PE companies want to salvage whatever money they can. Apollo is well past its horizon. They don't care about "Cengage", they care about $'s in the IRR requirements of their various funds. Thats it. Nothing eles matters. so no IPO? what else is left? anemic 1% growth? nope thats not going to do it. sell the car for parts? well maybe sell the parts a bit at a time
@241 bruh, you have real mental issues. You should seek help.
VIVA LAS VEGAS - HOW MANY NEWBIES CAN WE INFLUECE TO ASK ABOUT THE IPO THE NEXT FEW DAYS. I THINK I CAN GET A MAXIMUM 5 WITHOUT EXPOSING MYSELF. I CHALLENGE EVERYONE TO SPREAD THE WORD ABOUT THE IPO TO A NEWBIE AND GET THEM ALL TO ASK MANAGEMENT .
All the credible reporting says Cengage is preparing for an IPO with Citi and Morgan Stanley. A sale-in-pieces is not supported by any external sources, and it doesn’t match how multi‑PE ownership works. Could the IPO be delayed? Sure. But the ‘sold in pieces’ idea doesn’t line up with the facts.”
Here’s the breakdown.
All external reporting points toward an IPO, not a breakup
Multiple independent sources (Reuters, Bloomberg, Financier Worldwide, PE industry publications) have reported:
Cengage hired Citigroup and Morgan Stanley
Targeting a $500M IPO
Expected in 2026
PE owners are preparing for a public exit
There is zero reporting that Cengage is being sold in pieces.
Not one article.
Not one leak.
Not one banker comment.
If a breakup were happening, it would have leaked — especially with four PE owners involved.
Selling the company in pieces makes no sense for the owners
Cengage is owned by four private‑equity firms:
Apollo
KKR
Apax
Searchlight
A breakup sale would require:
All four firms to agree
Buyers for each business unit
Separate valuations
Separate due diligence
Separate regulatory reviews
Separate negotiations
Separate closings
That is massively more complicated than an IPO.
PE firms avoid multi‑track exits unless the company is collapsing — and Cengage is not collapsing.
Breaking up the company would reduce the total valuation
PE firms maximize value by selling the whole company, not pieces.
Selling in pieces usually happens when:
A company is distressed
Units are unprofitable
Bankruptcy is imminent
No buyer wants the whole business
None of that applies here.
Cengage is stable, profitable, and has predictable cash flow.
PE firms want a clean exit, not a fire sale.
The “sold in pieces” rumor is comes from internal anxiety, not facts
Management often says this when:
Revenue is down
Restructures happen
Leadership changes
Territories change
Morale dips
It’s a psychological reaction, not a factual one.
You’re spreading fear not information.
The only realistic alternative to an IPO is a full-company sale — not a breakup
If the IPO fails, the backup plan is:
A sale to another private‑equity firm
A sale to a strategic buyer (Pearson, Wiley, etc.)
Not a breakup.
PE firms almost never dismantle an asset unless forced.
Here’s what’s missing from your breakup claim
No external reporting
No banker leaks
No PE statements
No regulatory filings
No industry chatter
No financial logic
No strategic logic
It’s just an internal rumor.
Who actually gets paid in the IPO
Cengage’s ownership stack today includes:
Apollo — $500M preferred equity (convertible)
KKR — legacy first‑lien creditor turned equity holder
Apax — legacy owner + first‑lien creditor
Searchlight — major post‑bankruptcy equity holder
These firms own almost all of Cengage today.
When the IPO happens, they will receive:
Shares (converted from preferred equity or existing equity)
Cash (only if they sell shares during the IPO)
Future upside (if they hold shares and the stock rises)
How each PE firm “makes out” financially
A. Apollo (the biggest winner)
Apollo invested $500M in preferred equity in 2023.
Preferred equity converts into IPO shares at a predetermined formula.
Apollo benefits in three ways:
Guaranteed conversion
Priority payout
Potential upside if the stock trades well
Apollo will almost certainly walk away with hundreds of millions in realized or unrealized gains.
B. Apax, KKR, Searchlight (legacy owners)
These firms received equity during the 2013 bankruptcy.
Their outcome depends on:
IPO valuation
How much they sell
How much they hold
Lockup restrictions
If Cengage IPOs at a strong valuation, these firms could:
Sell a portion at IPO
Hold the rest for future appreciation
Exit fully over 12–24 months
They will likely recover their investment and generate a return, but not a massive one — because Cengage’s growth has been flat.
What determines how much money they make
- IPO valuation
This is the biggest factor.
If Cengage IPOs at:
$3–4B valuation → PE firms make a strong return
$1.5–2B valuation → modest return
< $1.5B valuation → weak return, possibly disappointing
Valuation is everything.
- How much they sell at IPO
PE firms typically:
Sell 20–30% of their shares at IPO
Hold the rest until lockup expires
Sell more over time if the stock performs well
The more they sell early, the more cash they realize immediately.
- Lockup periods
PE owners are usually locked up for 180 days post‑IPO.
They cannot sell until the lockup expires.
This means:
They get paper gains at IPO
They get real cash months later
- Market performance after IPO
If the stock rises:
They make more money
They sell more shares later
They exit with a strong return
If the stock falls:
They lose upside
They may delay selling
They may exit at a lower valuation
What happens to debt holders
Cengage’s major debt holders already became equity holders during:
The 2013 bankruptcy
Later refinancings
Apollo’s 2023 preferred equity deal
So there are no major debt holders left who get paid at IPO — they already converted.
The IPO is purely an equity event.
What this means for employees
Employees do not receive IPO proceeds unless they:
Hold equity
Hold options
Hold RSUs
Are part of a management incentive plan
Most employees will not receive direct IPO payouts.
However, employees may see:
New stock‑based compensation
New bonus structures
New performance metrics
More pressure to hit revenue targets
More restructuring to improve margins
PE firms always tighten operations before and after an IPO.
Apax’s equity was wiped out — but they kept some ownership because of the debt they bought
Apax’s original equity from the 2007 LBO was wiped out in bankruptcy.
But because they bought first‑lien debt, they were entitled to new equity along with other first‑lien lenders.
This is normal bankruptcy law, not a loophole.
Other creditors also converted debt to equity
Apax was not alone.
Searchlight, KKR, Oaktree, Oak Hill, BlackRock, and Franklin Mutual also had first‑lien stakes converted into equity.
This shows the process was broad and standard, not a secret maneuver.
Did Apax use insider information?
No evidence supports that claim
None of the reporting from:
Reuters, Financier Worldwide, Private Equity International. Bankruptcy filings suggests insider trading or improper access to non‑public information.
The debt was purchased on the open market, which is legal.
Distressed‑debt investors do this routinely.
Why insider trading is unlikely
To prove insider trading, regulators would need evidence that Apax:
Knew the exact timing of the bankruptcy filing
Used non‑public information
Traded securities based on that information
There is no reporting or legal action indicating any of this occurred.
Why people think it was shady
Even though it was legal, it looks suspicious because:
Apax was the original owner
They bought debt cheaply
Their equity was wiped out but they still kept ownership
Bankruptcy wiped out billions in debt
They emerged with influence over the reorganized company
This creates the appearance of a “backdoor retention of ownership,” even though the mechanism is standard.
But appearance ≠ (does not) illegality.
What actually happened legally
Here’s the real sequence:
Apax’s original equity was wiped out
Apax bought first‑lien debt on the open market
First‑lien debt holders (including Apax) received equity in the reorganized company
Other first‑lien lenders also received equity
Junior creditors received partial cash/stock
Bankruptcy court approved the plan
This is exactly how Chapter 11 works.
@rk exactly this. Everything will be sold in pieces. They can’t find investors.
@qv+1kxk2y936 Remember that Apax used insider information about the bankruptcy filing to buy up Cengage's secured debt for pennies on the dollar right before the filing and then converted it into ownership shares during bankruptcy. It was a backdoor way for them to retain ownership while having their debt wiped out.
@ka i cant decide if youre dense, deluded or one of the poor Kool-Aid drinkers who believe right up until the moment of your own execution. Probably a bit of all three....enjoy vegas and get your delta skymiles now while you can
@qc the sleeze oozes off MW. Creepy vibe the few times I’ve met him. I see why.
@qv Apax also bought before iPhones and social media and before e-commerce. Those ki-led textbooks and not one textbook publisher was prepared.
@q9 the IPO is dead
MH is going
The company will be sold off piecemeal
They arent talking about it because its dead. . They shopped it over the past 6 months and there were no takers to underwriter it. The McGraw debacle and share price destruction served as a warning to the investment community
@qj it’s a dying industry. Apax bought cengage at the exact wrong time before the ‘08 crisis for almost $8B- it’s valuation is worth less than $3B today. It’s crazy they still have ownership after 19 years when the average is 5-7 years. They will never sell it for what they need it to sell for. Zero clue why Apollo came in a couple of years ago- they are also probably kicking themselves.
@q9 they missed the June 30th filing deadline. The IPO is dead. Look for announcements soon. Changes coming
Do a Survey and asks us questions around targets and time frame of receiving our Targets. The survey should ask, do you like receiving your Targets after Finance has been able to review all orders calculate what your exact sales will be, then set the Target?
This really should be illegal. We need a Union.
They told us in May this year will be different. You will receive your targets earlier than you ever have before , now its July still no Targets or bonus plan.
#d-mbleaders
Survey? Why do they like the survey so much. MH was at partner with Boston Consulting Group , SYP NK and SVP MW also worked at Boston Consulting Group (BCG) , MH and MW love to to bring in their old friends from BCG or other companies where their old BCG colleagues are currently employed (McKinsey, Bain, Deloitte, etc.).
You scratch my back I will scratch yours, is in Full effect.
How many times in the past 15 years has a consulting firm been hired to fix Cengage? and after they leave everyone realizes the firm who were paid large amounts of money have made the MESS even Bigger. The only thing these firms truly did was help us change our name :
2007 → Cengage Learning (after Thomson Learning was sold)
2021 → Cengage Group (corporate brand refresh)
2026 → Cengage (dropping “Group” and unifying under one name)
- are any missing?
Oh and they helped us go from a royal blue to Purple Blue.. which is really purple but lets call is Cengage Blue. Ge-z and the sky is falling too.
MH and MW I'm so happy you spend the money were it counts , your leadership is beyond the greatness you believe you see in the mirror every morning.
Yes the whole company is talking about the IPO and here is why MGT isnt.
Your management acting like “nothing is happening” around an IPO is actually very normal, and it’s usually required under U.S. securities law. Here’s the short version first:
They’re not ignoring it — they’re legally obligated to avoid discussing it internally or externally until the SEC signs off.
Yes, the SEC absolutely watches for insider‑trading risks during an IPO quiet period.
Why management won’t talk about an IPO
Once a company files (or is preparing to file) for an IPO, it enters what’s called the quiet period under SEC rules. During this time:
Management cannot make public forward‑looking statements
Anything that could be interpreted as hyping the stock or influencing investor perception is prohibited.
They cannot disclose material non‑public information internally
Even casual internal discussion can create selective disclosure issues.
They must pretend “business as usual”
Because acknowledging an IPO before the SEC approves disclosures can violate Regulation FD (Fair Disclosure).
This is why you see news articles, leaks, or speculation — but internally, leadership acts like nothing is happening.
@kx nope, that was me. I have a new role and no need to call the tu-d a tu-d.
@ka once you go, I’ll ask the leadership team to bring it back. Are you the same faker who was going to stand up to MH on the last First Friday?? How did that go Mr. Loud Mouth, all talk and no action.
The whole company is talking about the IPO. My manager talked about it this week. Why won't MH and the ET team discuss it with us?
Hey Mr. Fake News, aka management. Will Leadership get on stage in Vegas and address the IPO that you continue to say isn't happening? Its widely been on reputable sites, but you are distracting as usual. How about you go to work and stop trolling. Resigned, Quit, fired, role elimination, who cares... AT is gone and there are more departures coming. Bring back the comings and goings, stop hiding in the shadows.
Position elimination.
@ap She's been tight-lipped about it. Once source said her kids are at an age where she wants to spend more time with them, yet the announcement said she wants to "take time to think about what's next for her professionally." Could be family issues because she was so obnoxiously loud and proud about her position.
@b9 yeah, I was one of the trackers who added up the goings and posted the numbers here. They said that the info will be available in workday but I can’t track it down.
And nothing is anonymous who are they kidding. They claim everything is confidential hahahaha. They want data to confirm their greatness but the lowest numbers are with the ET in the csuite everytime.
They do not care. They count their money and blame their failures on people who are overworked and underpaid and under appreciated.
I know some troll will respond to this in support of management. But we all know the truth.
@ap 14 years of driving the company into a dumpster fire. Cr-p products. Between her and ML, they took the school business to bottom of the barrel. Good riddance and g-d bless Jesus for making it happen. Thank you lord for hearing our prayers.
HA HA! Yea nobody reads this site but you and that sh*T show you call management....
Similar to when management said No one looks at the Comings and Goings site and then removed it. The whole company was checking Comings and Goings daily.
Be brave, bring back the comings and goings list, since you preach and believe in transparency. While you are at it ,,, hold a town hall about the upcoming IPO! Better yet, in Vegas get on the stage and tell us ALL, there are no plans for an IPO and anything about an IPO you have read on the internet has been false and just rumors.
MH is DJT territory in approval rating. What a loser. But, hey, he’s a rich loser.
@ap so sad for you - is this the 3 or 4th time you reposted this same link? You think the more you post, it will seem like more than 3 people on this site? A true dum--ss
Here is the link to AT departure on Linkedin. Anybody know why she departed?
https://www.linkedin.com/posts/audrey-turjanica_my-cengage-chapter-opened-when-i-signed-this-activity-7480689656825692160-g5DN
Anonymous?
Then how do they know that I didn't fill mine out?
Why do I have to be connected to the VPN?
Why does my manager get a report on who how many of us did not fill out the survey? \
Send it.. I will fill it out and Tell you exactly How I feel about the Train I'm on, waiting for the wreck!