This is an interesting article by Jonathan A. Knee of the Columbia Business School about the perils of making a profit in the education sector. I note that he has a book coming out, fleshing out his case studies and arguments about for-profit investing in education.
Knee describes the many visionaries who saw the possibilities of transforming education into a for-profit bonanza but lost their shirts.
Earlier this year, LeapFrog Enterprises, the educational-entertainment business, sold itself for $1 a share. The deal came several months after LeapFrog received a warning from the New York Stock Exchange that it would be delisted if the value of its stock did not improve, a disappointing end to the public life of a company that had the best-performing IPO of 2002.
LeapFrog was one of the very last remaining of the dozens of investments made by Michael Milken through his ambitiously named Knowledge Universe…
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