IBL News

Author: IBL News

  • Zovio Sells Fullstack Academy and Liquidates the Company

    Zovio Sells Fullstack Academy and Liquidates the Company

    IBL News | New York

    The for-profit edtech firm Zovio Inc. (Nasdaq: ZVO) will approve the liquidation and dissolution of the company at a virtual shareholder meeting next October 25, 2022, as reflected in a filing with the U.S. Securities and Exchange Commission. The Board of Directors closed the business on September 11, 2022.

    Following the liquidation, Zovio plans to sell Fullstack Academy for an amount estimated between $34 and $55 million, according to the mentioned filing to the SEC. Stockholders would receive only a portion of it, probably below $20 million.

    With a team of 1,400 employees, mostly residing in Arizona, California, and Colorado, Zovio was a troubled education technology company servicing higher education institutions.

    In August, Zovio sold its online program management (OPM) business to the University of Arizona Global Campus (UAGC). Two years before, the University of Arizona purchased another company asset, Ashford University, which became the Global Campus.

    The Global Campus also took over a Zovio office in Chandler, Arizona, with $20 million remaining on its lease.

    In May 2022, Chandler, Arizona-based Zovio, sold TutorMe, for $55 million.

    Now, under its Plan of Dissolution, Zovio will sell Fullstack Academy, an initiative that offers coding, data analytics, and software development classes online and at their New York City campus.

     

  • President Biden’s Student Loan Cancellation Plan Will Cost $400 Billion

    President Biden’s Student Loan Cancellation Plan Will Cost $400 Billion

    IBL News | New York

    U.S. President Biden’s plan for student loan forgiveness could cost $400 billion, according to a report from the nonpartisan Congressional Budget Office (C.B.O.), released this Monday.

    The plan, outlined last August through executive action, cancels $10,000 in debt for those earning less than $125,000 per year and $20,000 for low-income families who already received Pell grants. This relief will impact 37 million borrowers with federal loans.

    Today, 45 million Americans owe $1.6 trillion for federal loans taken out for college.

    Biden’s plan would be one of the costliest programs of the Biden Administration, and its effects on the economy would be felt over the next decade.

    Moreover, Joe Biden’s decision to extend a pause on federal student loan repayments through the end of the year could end up costing $20 billion more.

    The report revives the political debate over student loan forgiveness just weeks before the midterm elections.

  • Learners Prefer the “Anytime-Anyplace” Approach Along with Blended Technology

    Learners Prefer the “Anytime-Anyplace” Approach Along with Blended Technology

    IBL News | New York

    In the new post-pandemic landscape, the blended option that combines asynchronous (online, on-demand) and synchronous (live, whether in-person or online) instruction is the most popular use of education technology. In addition, the most valuable quality is flexibility to fit around one’s life — meaning the “anytime-anyplace” approach.

    These are the main findings of new research conducted by edX and ACCA (the Association of Chartered Certified Accountants) on the role and trends of educational technology, titled “EdTech: Supercharging careers in accountancy.” Over 1,400 learners and educators connected to accountancy participated in this global survey.

    The research also found six key trends for educators in EdTech::

    1. Bite-sized or short-content videos
    2. Integrated learning and practice
    3. Role of AI and machine learning in learning and assessment
    4. Micro-credentials in professional learning and employment settings
    5. Gamification and simulation
    6. Augmented or virtual reality/Metaverse

    The study detected the increased use of AI and algorithms to support students’ learning outcomes, along with innovative resources, including micro-video lessons, open-source textbooks, and creating custom exam practice software.

    The research identified the existence of several barriers that increase the digital divide, such as access to reliable high-speed internet, power, and quiet learning places.

  • Stanford Law School Launches Controversial Income-Share Agreements as a Pilot Program

    Stanford Law School Launches Controversial Income-Share Agreements as a Pilot Program

    IBL News | New York

    Stanford Law School decided to offer students, as a pilot, the controversial ISA programs, or “income share agreements”, in an attempt to make its annual tuition — roughly $67,000 — more affordable.

    Under this program, announced last week, participating in the first and second year Stanford law students will receive up to $170,000 upfront to pay for their degrees through a nonprofit called Flywheel Fund for Career Choice.

    Upon graduation, students will pay 10 percent of their future earnings for a period of 12 years to Flywheel.

    Stanford officials said their ISA program was designed to make sure that students do not pay more than they would if they had taken out federal loans.

    ISA programs have faced increasing scrutiny in higher education in the last year. Consumer advocates have long argued that such programs are predatory loans. Many colleges have decided to remove them.

    According to a report issued by Reuters, the rising law student debt loads are a growing concern in the legal profession.

    Nearly 71% of law students leave campus with student loans, and their average debt hovers around $138,500 — higher than any other field besides medicine.
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  • The Owner of Inside Higher Ed Acquires a Leading Student Recruitment Events Firm

    The Owner of Inside Higher Ed Acquires a Leading Student Recruitment Events Firm

    IBL News | New York

    The London-based, owned by Inflexion Private Equity firm, media group Times Higher Education (THE), the recent owner of Inside Higher Ed, announced this week another acquisition: an organizer of international student recruitment events called BMI. The transactional amount wasn’t disclosed.

    Founded in 1987, BMI runs international student recruitment events and high school counselor workshops. It also has a digital advisory platform in Latin America, Viva Mundo. Over 2,400 institutions from over 40 countries have participated in BMI events.

    Paul Howarth, CEO at THE, commented, “together we can transform the events landscape for students looking to study abroad connecting them with institutions.”

    THE, a 50-year-old company, said that it “will collaborate with BMI on event content and unlocking its brand reach, unique data, and insights for their hundreds of thousands of annual event attendees.”

     

     

  • The London School of Economics Launches a Stackable Pathway to Degrees in Mathematics and Statistics on edX

    The London School of Economics Launches a Stackable Pathway to Degrees in Mathematics and Statistics on edX

    IBL News | New York

    The London School of Economics and Political Science (LSE), a member institution of the University of London, became the first university to launch a series of edX micro-credentials — two MicroBachelors programs and a MOOC — that provide learners with a stackable pathway towards a full Bachelor’s degree.

    2U’s brand edX (Nasdaq: TWOU) announced the partnership with LSE yesterday. The two MicroBachelors programs are Statistics Fundamentals and Mathematics and Statistics Fundamentals, as well as a free MOOC (Massive Open Online Course) on foundational mathematics titled An Introduction to Pre-University Mathematics, scheduled for 2023.

    “This is the first truly stackable path to a fully online undergrad degree,” said 2U Co-Founder and CEO Christopher “Chip” Paucek.

    Each of LSE’s new MicroBachelors programs includes four transferable, university-level courses. They are priced at $896.40, each. Upon completion, the students will be able to apply to online undergraduate degree programs from the University of London.

    “The innovative offering creates an incredible opportunity for us to further increase our global impact by providing a vast community of learners with a clear pathway to gain the critical mathematics and statistics knowledge to achieve academic success,” said Wim Van der Stede, Academic Dean for Extended Education at LSE.

    According to edX, its partnership has played a role in LSE’s strategy to expand its educational offerings and make teaching, learning, and research accessible to people who wouldn’t have been able to access the institution in traditional formats.

    To date, over 26,000 learners have completed online certificate courses offered through LSE and 2U, and over 1,000 students have enrolled in its online undergraduate degrees powered by 2U.

    “Creating new pathways to degree attainment is an essential part of edX’s mission to unlock the potential of our community of 45 million learners worldwide,” said Christopher “Chip” Paucek.

     

  • Data Mismanagement Jeopardizes the AI Achievement, Says an MIT Report

    Data Mismanagement Jeopardizes the AI Achievement, Says an MIT Report

    IBL News | New York

    Data management is critical for the successful use of AI, which is expected to be widespread by 2025. However, data mismanagement can jeopardize the company’s future AI success.

    This is the main finding of a research report by MIT Technology Review and Databricks – creator of the lakehouse architecture — after interviewing CIOs from 600 companies, including Procter & Gamble, Johnson & Johnson, Cummins, Walgreens, S&P Global, and Marks & Spencer.

    More specifically:

    • 72% of CIOs say that data is the biggest challenge for AI.
    • 68% say unifying their data platform for analytics and AI is crucial.
    • 72% believe multi-cloud is critical.
    • A majority of surveyed support open standards to preserve strategic flexibility.

    Over three-quarters (78%) of the executives surveyed say that scaling successfully AI and machine learning is the top priority for their enterprise data strategy over the next three years.

    Of the 14 industries in the survey, financial services are expected to see the highest investment growth in data management and infrastructure. Retail/consumer goods and automotive/manufacturing companies will follow.

    “Improving processing speeds, governance, and quality of data, as well as its sufficiency for models, are the main data imperatives to ensure AI can be scaled,” said Laurel Ruma, Global Director of Custom Content, MIT Technology Review Insights.

    “AI-ready data is no longer a nice-to-have — it is critical to solve real-world problems and drive business outcomes,” says Chris D’Agostino, Global Field CTO at Databricks. “An open and unified platform like the Databricks Lakehouse enables organizations to put their data into action,” he added.

     

  • Figma’s CEO Dylan Field Pocketed One Billion More than Initially Announced by Adobe

    Figma’s CEO Dylan Field Pocketed One Billion More than Initially Announced by Adobe

    IBL News | New York

    Figma’s CEO Dylan Field and employees will make billions more than initially thought with the exorbitant sale they orchestrated to Adobe, which caused a stir on Wall Street, Silicon Valley, and the design community.

    Yesterday, Adobe Inc’s stock dropped another 1.69%, almost double the fall of the market. Figma’s $20 billion astronomical purchase provoked a backlash among some Adobe investors, especially given the multiple of 50 times sales over the expected revenue for the year.

    Yesterday, the market valued Figma at negative $16.5 billion, trading down more than 23% since the news broke.

    The compensation for Dylan Field and top executives is due to a historic retention package worth $2.3 billion at the time of the announcement — more than $1 billion of that for Field alone, according to a report on Forbes yesterday based on Adobe’s disclose of the deal through the regulatory filing at the SEC.

    The payoff comes in the form of 6 million restricted stock units, or RSUs, that will vest over four years after closing.

    Half of that is earmarked specifically for Field alone. “And Adobe initially offered Field more, the sources add, before the CEO settled upon a roughly even split with staff,” wrote reporter Alex Konrad on Forbes.

    The deal made Field, 30 years old, and cofounder Evan Wallace — who left the company in 2021 — billionaires.

     

  • Adobe’s Stock Continues to Fall as the Market Signals Its Concern About the Figma Deal

    Adobe’s Stock Continues to Fall as the Market Signals Its Concern About the Figma Deal

    IBL News | New York

    After Figma’s purchase by Adobe for $20 billion, analysts wonder which design startups will be the acquisition targets, especially those in the creative space. Specifically, it will be interesting to see what comes next for companies like Canva and Sketch.

    Meanwhile, Adobe’s stock continued to fall by another 1.16% yesterday, losing the bull day in the market. Wall Street signaled its concern with the Figma deal, saying that this wasn’t the acquisition to do.

    Wells Fargo analyst Michael Turrin cut his rating on the Adobe stock along with his price target. Edward Jones, Oppenheimer, Baird, Bank of America, and Barclays downgraded the stock in response. Most of them talked about the price being an issue.

    Since the purchase yesterday the stock has dropped 22.68%, reflecting the negative view of investors. Significantly, the capitalization loss amounts to $25 billion, more than the purchasing price.

    The transaction, announced last week, was surprising for its scale and valuation — twice over a year ago, when Figma was last valued at $10 billion in June 2021.

    Until it, Adobe’s largest deal was Marketo’s acquisition for $4.7 billion in 2018. Experts estimate that Adobe paid an astronomical amount simply because Figma was a threat to Adobe.

    Adobe XD is a similar product, but its pricing structure of $600 per year, as part of the package of Creative Cloud All Apps, makes it unattractive, especially in the educational industry.

    “Adobe saw the Figma deal as its organization-altering moment as it watched the creative market making a key change from one centered on creating assets with tools like Photoshop and Illustrator to one firmly focused on the creators themselves and the collaborative nature of the design process,” concluded analyst Ron Miller on Techcrunch.

    The visionary founders of Figma, backed by large amounts of capital ($333 million to date) shed by the Silicon Valley top firms, were becoming an increasing business problem for the old-guard company of Adobe.

    The willingness of Adobe to overspend to grab the young upstart and fast-scaling business has been seen as a defensive move.

  • Figma’s $20 Billion Acquisition by Adobe Causes Concern in the Creative Community

    Figma’s $20 Billion Acquisition by Adobe Causes Concern in the Creative Community

    IBL News | New York

    The recent $20 billion purchase of design platform Figma by Adobe — the giant behind Photoshop, Illustrator, and Premiere — is causing concern in the creative community.

    Over the past years, Figma built its brand and reputation as a collaborative and forward-thinking competitor to Adobe. Founded by Dylan Field [in the picture above] and Evan Wallace in 2012, the company pioneered product design on the web by adding web-based, multi-player capabilities.

    Last Thursday, that competition ended when Adobe (Nasdaq: ADBE) announced that it closed a transactional deal to buy for $20 billion with approximately half cash and half stock.

    Adobe’s move to taking, once again, a major competitor off the market dramatically reduces the list of companies capable of challenging the giant.

    However, San Jose, California-based Adobe said that it will keep Figma independent, keeping it free for those in education and keeping its current pricing plans — a free starter modality plus a paid professional plan that starts at $12 per month per editor. These prices are significantly less than an Adobe Creative Cloud single-app subscription.

    Adobe said that “the combination of Adobe’s and Figma’s communities will bring designers and developers closer together to unlock the future of collaborative design.”

    Figma’s CEO and Co-Founder Dylan Field’s words didn’t erase concerns, despite ensuring that pricing plans won’t change. In a blog post, he confirmed that he will continue to lead the Figma team, reporting to the President of Adobe’s Digital Media, David Wadhwani, upon the closing of the transaction.

    “There is a huge opportunity for us to accelerate the growth and innovation of the Figma platform with access to Adobe’s technology, expertise, and resources in the creative space,” he said. “For example, we will have the opportunity to incorporate their expertise in imaging, photography, illustration, video, 3D, and font technology to the Figma platform,” Dylan Field added.

    “Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions,” said unapologetically Shantanu Narayen, Chairman and CEO at Adobe. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”

    Figma is expected to surpass $400 million in revenues in 2022, with gross margins of approximately 90 percent and positive operating cash flows.

    The transaction is expected to close in 2023, subject to the receipt of required regulatory clearances and approvals.

    Dylan Field is estimated to own 10% of Figma’s stock—a share valued at $2 billion at the time of the company’s 2022 acquisition by Adobe.