The oracles of the future are now saying I told you so… With the announcement today that one of the prime educational companies is now taken over by a private equity firm similar to Bain Capital, the writing is now on the wall as to what the whole push of Common Core was all about…
Renaissance Learning Inc, an educational company which Delaware handed over just shy of $555,555 dollars (just $2004 short) last fiscal year was just picked up for $1.1 Billion…. It last traded hands 2.5 years ago for $455 million. More than doubling its value with the push for Common Core… Companies in charge of our children’s learning, have been reduced to the value of a poker chip…. a piece of blue plastic.
The market has been moving fairly strongly…
Other Market Moves (courtesy of Education Week)
- 2012: McGraw-Hill Cos. sold its education division to Apollo Global Management LLC for $2.5 billion.
- 2011: Providence Equity Partners LLC purchased Blackboard Inc. for $1.64 billion.
- Pearson paid $230 million for ed-tech company Schoolnet.
- 2010: News Corp. spent $360 million to buy 90 percent of education software company Wireless Generation.
Counting this transaction, that totals $5.5 billion dollars….
With this much money being poured into those private suppliers to our educational system, the question emerges: what happens when those investments sour? Usually what happens in business is that the quality of the product the bought-business puts out, decreases exponentially as the business is squeezed to cover the cost of the initial investment..
In case you still don’t get it, Wall Street bought educational companies 3-4 years ago. They got Common Core to then challenge and change standards, so their companies could then supply schools with materials invoking those standards . They have now doubled in value. They are now selling to get out of the market….
Common Core was never anything else but a false crises to drive up the value of their stock….