Blackboard, creator of the dominant online learning platform among non-profit colleges, was sold to Providence Equity Partners, the company announced Friday. The announcement prompted lamentations of the leaders of campus technology and insurance from Blackboard that there is no significant changes in sight.
"We have some concerns," says Sam Segran, Chief Technology Officer at Texas Tech University. "Any time that somebody will dans equity, one of the concerns we have is profit motivation and less motivation in terms of educational needs."
Transition from Blackboard to publicly traded company (its status since 2004) for the holding of private capital could mean more indeed focus on earnings, said Trace Urdan, senior analyst at the investment firm Signal Hill. The new owners will not have to worry of feverishly acquisition of other companies to make the prices of the shares of the company back, said Urdan. More likely, Providence will address new investment as a milch cow, with emphasis on the Blackboard products reliable win money and eventually unloading those that do not.
However, the sale of Blackboard may have a greater impact on Wall Street on the Campus of drive, say experts. The "losers" in this case may be limited to small software companies hoping to be bought and short-sellers who are betting against Blackboard.
As for College and University, clients I Don ' t think life change much, "said Urdan." For Blackboard to continue to be profitable in a reliable manner, not to drive customers into the arms of its competitors by climbing prices, he Urdan. Therefore, more emphasis on earnings does not necessarily mean a reduction in the largest of the clients.
More than half of non-profit colleges and universities using Blackboard learning management system learning of the company, which is used in an online environment where teachers and students can download to download the course material, discussion with each other and class sessions. Learning management systems are often seen as "mission critical," particularly in the area of rapid growth of online education. Thus any major reorganization to Blackboard necessarily has a ripple effect in all of its thousands of customers of ed higher.
Ray Henderson, President of Blackboard learn, said that the company is not expected the change of ownership to influence the price "in the foreseeable future."
"It is natural that the news of this magnitude would raise questions for our customers." Will there be sudden changes in policy, price or strategy? "Henderson wrote in a blog Friday ticket. "It is our plan that the key strategies that brought us here will continue to guide our way." Our recent years success has been our focus on the performance of the blackboard on the fundamentals, support continuous improvement that we in the responsiveness of support, openness, transparency and quality. I did envision no change in our underlying commitment to these fundamental principles. »
Henderson responded to the idea that Blackboard could divest itself of some of its newer products, such as Blackboard Mobile and Blackboard Analytics - the latter of which several analysts cited as a potential loss leader. "I think it's fair to say there is strong belief in the importance of the mobile education and a growing demand and institutional for analytics", wrote Henderson. He added that "the two parties believe K-12 and on international markets deserve investment" - contrary to the speculation that the market for K - 12, with its decentralized structure of the purchase and technology budgets relatively small, could be perceived by the Providence as unnecessary.
In a letter to its customers, CEO of Blackboard Michael Chasen said that the leaders of the company will remain intact. This may be crucial to ease blood pressure from concerned customers, including the retention of Henderson, which many credit to improve the reputation of the company for customer service after he joined the company of Angel learning in 2009.
Still, some campus CIOs are worried whether the change of ownership will be as transparent as Blackboard is promising. Kelly Dempsey-Little, an instructional technologist at Skidmore College, says that while she sees no reason to panic, she and her colleagues spoke explore other options of learning, just in case management. "We are very pleased with Blackboard now, but we are very concerned," said. The change in ownership would not bad for the relationship of Skidmore with its learning vendor management, but "I think that it will remain the same", she said.
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