Tag: Gainesville Sun

I wrote a post over the weekend that included information from the Gainesville Sun about the University of Florida Online (UF Online) program and its expected payments to Pearson Embanet. Chris Newfield from Remaking the University also wrote on the subject today. Chris raises some very important issues in his post, including his point:

Universities may have a cost disease, but they now have a privatization disease that is even worse.

In the article, however, there seems to be a misunderstanding of how the revenue sharing agreement works. Given the importance of the questions that Chris raises, I think it is important to understand the payment model used by most Online Service Providers (OSP) such as in place at UF Online.

The part of the blog post that is mistaken, in my understanding, is this [emphasis added]: (more…)

While I have written recently about UF Online and 2U, there is actually very little insight into the operations and finances of the market segment for Online Service Providers (OSP, also known as School-as-a-Service, Online Program Management). Thanks to 2U going public yesterday and the Gainesville Sun doing investigative work on UF Online, we have more information on one of the highest growth segments for educational technology and online learning.

2U’s IPO

2U went public yesterday, initially offered at $13.00 per share and closing the day at $13.98 (a 7.5% gain). The following is not intended to be a detailed stock market evaluation – just the basics to present the general scale of the company as insight into the market. While there is not a direct comparison, this IPO is a much better IPO than the most recent ed tech offering when Chegg (down 2.7% its first day and down 26% to date). Based on 2U’s first day of trading and the IPO filing: (more…)