Analysts and sources I spoke with Monday, both on and off the record, said the decision to bring on Bill Ballhaus as CEO was a combination of Bhatt failing to make progress building the company’s business and lacking the experience needed to successfully run a company of that scale. And that means at least several years before Providence Equity Partners, which owns a majority of the company after paying $1.64 billion for it in July 2011, begins actively marketing the company for sale, according to industry experts.
Earlier this week I wrote about Apollo Education Group, parent of the University of Phoenix, putting itself up for sale due to its weakening financial position. I also noted that I doubt that McGraw-Hill Education is going to be able to go public in the near-term. Part of the reason for this latter observation is the dramatic fall of Pearson in the stock market, triggered by its warnings that it would miss earnings estimates. In Audrey’s excellent year-end post on the business of ed tech, she noted:
Private equity firms sure love buying ed-tech companies. Perhaps because the stock market’s sorta “meh” about them.