Maxwell Communication Corporation
| Company type | Public limited company |
|---|---|
| Industry | Media |
| Founded | 1964 |
| Founder | Robert Maxwell (majority owner from 1982) |
| Defunct | 1991 |
| Fate | Entered administration and sold off in parts after Robert Maxwell's death |
| Headquarters | United Kingdom |
Area served | United Kingdom, United States |
Key people | Robert Maxwell (owner) |
| Products | Publishing, media |
Maxwell Communication Corporation plc was a prominent British media enterprise, publicly traded on the London Stock Exchange and included in the FTSE 100 Index. The company ceased operations in 1991 following the demise of its proprietor, Robert Maxwell.
Origins and Challenging Periods
The origins of the company date back to 1964 when Hazell Sun combined forces with Purnell & Sons, owners of the publisher Macdonald, resulting in the creation of the British Printing Corporation. In 1967, its magazine division was merged into the Haymarket Group. During the 1970s, the British Printing Corporation encountered multiple industrial disputes with trade unions, notably a strike in 1978 that disrupted the production of The Times and Sunday Times for nearly ten months.
Acquisition by Robert Maxwell and Corporate Transformation
In July 1981, Robert Maxwell executed a surprise takeover by acquiring a 29% shareholding; by 1982 he had gained full ownership. The company was renamed British Printing & Communications Corporation in March 1982 and later rebranded as Maxwell Communication Corporation in October 1987.
Maxwell expanded his holdings in 1988 by purchasing the American publishing firm Macmillan Inc., along with Science Research Associates and the Official Airline Guide. In 1989, SRA was divested to a joint venture formed between Maxwell’s Macmillan and McGraw Hill Education.
Insolvency Proceedings and Subsequent Legal Actions
Following Robert Maxwell’s death, the company entered administration in 1991. Its various divisions were sold off to different media organizations: Time Warner, then owner of Little, Brown and Company, acquired Macdonald; McGraw Hill assumed full control of the Macmillan/McGraw Hill segment; OAG was purchased by Reed Elsevier; and Macmillan was absorbed into Simon & Schuster.
In 1999, British judiciary imposed a £3.3 million penalty on Coopers & Lybrand due to major audit deficiencies connected to the Maxwell group.