The University of Phoenix is reportedly considering buyers other than the University of Idaho, according to a recent Bloomberg report. While officials still claim that they have not let go of the idea of a partnership, there is currently no progress being made in UI’s acquisition of UPX.
UPX is a for-profit online university serving approximately 85,000 students. The deal has been a work in progress since early 2023, though progress has been halted in part due to delays from the Idaho legislature.
The State Board of Education has given UI a June 10 deadline to close this deal, an extension on the previous deadline of May 31, 2024. With the date fast approaching, the two universities have entered a standstill.
In an email to EdNews, UI spokeswoman Jodi Walker wrote, “We continue to see incredible value in University of Phoenix. However, next steps are in the hands of Phoenix and its ownership team.”
The delays in the acquisition can be attributed to the topic’s controversial nature within the Idaho legislature, with some politicians being adamantly against the proposal and many pointing out the apparent air of secrecy surrounding details of the plan.
In June of 2023, Idaho Attorney General Raúl Labrador filed a lawsuit against the State Board of Education, claiming that the board violated Idaho’s Open Meetings Law by holding closed door meetings to discuss UI’s acquisition of UPX.
After the Ada County District Court declared the meetings to be legal, Labrador appealed the decision and moved the case to the Idaho Supreme Court. While the Supreme Court did not explicitly state that the meetings were illegal, they did eventually overturn the district court’s ruling.
Additionally, many are concerned about the hefty price tag UPX poses for UI, with a purchase price of $550 million according to UI’s UPX affiliation FAQ. UI has already spent roughly $15 million on consulting.
The last that was heard from the Idaho Legislature on the purchase was in March of 2024 when the state Senate vetoed the Phoenix bill 19-14. Despite this, spokespeople from both UI and UPX remain hopeful that the acquisition could still happen.
“We continue to be excited about the proposed affiliation with UI and the opportunity to support important educational and workforce needs in the state of Idaho,” said Andrea Smiley, UPX spokeswoman, to Idaho Education News. “The two universities will continue to collaborate to find solutions.”
Per the revised agreement, Phoenix was granted the latitude to talk to other potential buyers through a non-exclusivity provision, which could potentially result in the university going public. However, according to this revised agreement, UI will receive $15 million if another buyer purchases Phoenix, effectively reimbursing what has already been spent.
Julia Kolman can be reached at [email protected].