HARVARD, MIT, AND EDX ANNOUNCED TODAY that edX, the two institutions’ 2012 joint venture into online education, would be sold to leading educational technology company 2U for $800 million. 2U, a publicly traded company listed on the NASDAQ, with revenues expected to approach $1 billion in 2021, is an online program manager. The company provides digital platforms and marketing and logistical support that allows colleges and universities to offer online instruction but does not itself provide degrees.
As part of the agreement, which is subject to approval by Massachusetts attorney general Maura Healey ’92, 2U will own and plans to operate edX as a public benefit entity, which means that in addition to creating value for shareholders, edX will also provide a specific public benefit—in this case, online courses, some of which can be audited for free. Currently, edX offers more than 3,000 online programs. “With the acquisition,” according to a University statement, “2U’s network will expand to include more than 230 partners, including over 185 nonprofit colleges and universities and 19 of the top 20 ranked universities globally.”
Harvard University provost Alan M. Garber said in an interview that the most important aspect of the match with 2U is that the company will continue edX’s mission. “They have committed to continuing to provide free audit tracks—in other words, free courses—in a wide range of subjects. And there are other provisions of the agreement,” said Garber, “that give us a great deal of comfort” that they will continue to make “great courses available at low or no cost to learners throughout the world.”