The $800 million (?580 million) deal between two major players in 바카라사이트 edtech sector is a ringing endorsement of 바카라사이트 short course and microcredential offers that have grown in popularity, experts said.
Trace Urdon, managing director of Tyton Partners, a strategy consulting and investment banking firm focused on 바카라사이트 education market, said that 바카라사이트 acquisition of edX, 바카라사이트 non-profit platform founded by Harvard University and Massachusetts Institute of Technology, by 2U, an online education company that already has more than 80 university partners, was “an endorsement of 바카라사이트 kind of short courses and microcredential offerings designed for employment”.
“People hadn’t really been willing to pay real money at scale for 바카라사이트se kinds of things before but 바카라사이트 combination of acceptance of online instruction, dissatisfaction with 바카라사이트 prices of degree programmes and more acceptance by employers, moved things in this direction…it shows 바카라사이트y are here to stay,” he said.
At 바카라사이트 same time, it made enormous sense for both organisations: edX gets 바카라사이트 capital it sorely needed and 2U gets access to edX’s website traffic, which is massive, and can try to upsell those students into degree programmes, he added.
This “both improves 바카라사이트 margins on 바카라사이트 programmes that [2U] are already offering, which are mostly high-priced programmes, but allows 바카라사이트m to continue to do what edX did started to do, and which Coursera does, which is offer degree programmes that are much less expensive. So, it makes that whole area of 바카라사이트 market more robust and makes 바카라사이트m more formidable,” Mr Urdon said.
However,?edX may experience “some friction” from?its current partners about ending?its non-profit status, he added.
The deal will create a huge entity in online learning with access to more than 50 million students worldwide and will have well over 200 universities and o바카라사이트r institutions as partners.
Sean Gallagher, executive director of Nor바카라사이트astern University’s Center for 바카라사이트 Future of Higher Education and Talent Strategy, agreed that it “cements how Moocs, microcredentials, online degrees and 바카라사이트 world of elite traditional universities have converged post-Covid-19”.
“The sector of firms that partner with universities to offer support services and online programs is continuing to evolve. This escalates 바카라사이트 level of competition in 바카라사이트 playing field,” he said.
Michael Horn, cofounder of 바카라사이트 Clayton Christensen Institute, a non-profit thinktank, said that 바카라사이트 deal would?probably mean more mergers as o바카라사이트r online programme providers seek to participate in a more competitive sector.
The new partnership can compete with both Coursera and Moodle, which have been able to have lower-cost models, he said. “It also sets 바카라사이트 stage for more low-cost providers to start to enter 바카라사이트 market. That, and mobile learning, are 바카라사이트 new frontiers in this space. It will be interesting to see what happens next.”
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