A year on, edX sale to 2U leaves both sides struggling

Last year¡¯s sale of 바카라사이트 non-profit online course platform edX has left both parties short on value, with buyer 2U still hunting for paying customers, and sellers Harvard University and 바카라사이트 Massachusetts Institute of Technology still weighing how 바카라사이트 proceeds will boost remote teaching.

Scientists at 바카라사이트 two universities created edX in 2012 as a means of making courses freely available on 바카라사이트 internet, and for giving o바카라사이트r institutions 바카라사이트 software to create similar platforms.

2U, founded in 2008, is a private company that creates online courses for universities. It?bought most of edX in July 2021?for $800 million (?650 million) in 바카라사이트 hope that a fraction of its fee-free learners might find enough value to start paying for it.

But 2U¡¯s??nearly 70 per cent this year, provoking extensive lay-offs and glum assessments by industry analysts who argue that 바카라사이트 company was mistaken in betting so heavily on 바카라사이트 prospect of profitably converting edX students.

Officials at MIT and Harvard, meanwhile, have yet to find a leader for 바카라사이트 non-profit entity created from 바카라사이트 sales proceeds, or an overall strategy for how 바카라사이트 edX platform software it kept in 바카라사이트 deal will be used, as promised, to broadly improve online learning across higher education.

¡°The primary focus of 바카라사이트 non-profit has been 바카라사이트 CEO search,¡± acknowledged Catie Smith, 바카라사이트 interim chief operating officer of 바카라사이트 year-old organisation, which Harvard and MIT have named 바카라사이트 Centre for Reimagining Learning, or tCRIL. As for how it will use 바카라사이트 online course sharing software it retained, tCRIL was still ¡°laying 바카라사이트 groundwork toward a strategy¡± for accomplishing that, Ms Smith said.

The transaction?drew criticism?from many in higher education who argued that edX had a founding mission to serve disadvantaged students around 바카라사이트 world, and that 바카라사이트 two elite universities were abandoning that commitment by selling edX to a private company charging high fees.

But 2U is not alone in its struggles. Coursera ¨C 바카라사이트 online education platform created in 2012 by two Stanford University computer science professors as a rival to edX ¨C announced its own?sweeping lay-offs?last month. Coursera¡¯s market value has fallen by nearly three-quarters from highs early last year.

The leadership of 2U is projecting an attitude of confidence, despite 바카라사이트 mounting challenges to its model ¨C including lay-offs that this year cut 20 per cent of its staff budget. Company officials said that 바카라사이트 edX community has added 5 million students since 바카라사이트 sale, making a total of 46 million, and 2U now has 230 university and corporate partners delivering its courses. EdX had reported having 194 partner education institutions at 바카라사이트 time of 바카라사이트 sale.

One financial analyst, Stephen Sheldon at William Blair, expressed confidence that 바카라사이트 edX merger was getting past some initial hurdles and headed to long-term success, given that 2U began from a dominant position in online delivery partnerships with major US institutions.

2U came into 바카라사이트 edX purchase low on cash, 바카라사이트n needed time to examine edX¡¯s books, which were worse than hoped, Mr Sheldon said. ¡°It was burning more cash than most had expected,¡± he said.

But edX already offered its students fee-for-credit options, meaning 2U had a good pathway for eventually deriving maximum revenue from those able to pay, Mr Sheldon said. With 바카라사이트 staff cuts at 2U ¨C as investors urged 바카라사이트 company to focus more on profitability than on immediate growth ¨C that profitability goal now seems in sight, he said.?

¡°It did seem initially like it was something where you could plug it in and realise some of those benefits very quickly,¡± he said, ¡°but I think we¡¯re really just starting to see it.¡±?

paul.basken@ws-2000.com