Bloomberg: University of Phoenix looking at IPO
Move would take University of Idaho out of running for online schools purchase
The University of Phoenix’s ownership groups are considering an initial public offering, a move that would take the University of Idaho out of the running for a Phoenix purchase.
Bloomberg reported Thursday on the possibility.
The development comes as the U of I’s bid for the for-profit online giant appears to be at a standstill. U of I and State Board of Education officials have said any plan for a purchase would need to go through the Legislature. But the 2025 legislative session could be heading into its final weeks — and, to date, there have been no Phoenix-related proposals before lawmakers.
Citing unnamed sources, Bloomberg reports that Apollo Global Management Inc. and The Vistria Group are exploring a sale or IPO for Apollo Education Group. The Apollo Education Group is Phoenix’s holding company, and Apollo- and Vistria-affiliated funds took the education group private in 2017, Bloomberg reports.
No final decisions have been made, but sources told Bloomberg that an IPO could take place as soon as the third quarter of 2025. A transaction could value Apollo Education Group at $1.5 billion to $1.7 billion, Bloomberg reported.
In a statement Monday, the U of I said it is continuing “to seek viable pathways” to acquire Phoenix. “Building an affiliation with University of Phoenix is a big, bold proposal that pushes the boundaries of traditional thinking of Idaho higher education,” the statement said, in part. “We know that the University of Phoenix creates substantial value and is getting stronger every day.”
The U of I is on the clock to close a Phoenix deal.
After the 2024 Legislature balked at the U of I’s $685 million purchase plan, the parties regrouped.
In June 2024, the State Board gave the U of I an extension to reach a deal, setting a June 10 deadline.
The extension allowed Phoenix and Apollo Global Management to talk to other would-be buyers or pursue an IPO. In exchange, the U of I received $5 million to cover some of its Phoenix-related consulting and due diligence costs.
The agreement also means the U of I could receive additional “breakup fees:” an additional $5 million if Phoenix stands pat, or an additional $15 million if Phoenix partners with a different buyer or pursues an IPO.
The U of I has spent at least $14 million on Phoenix-related consulting, according to previous Idaho Education News reporting from 2024.
The proposed Phoenix purchase was a heated issue during the 2024 session — at the center of tense legislative committee hearings and House and Senate floor votes. But the issue has receded to the background in 2025.
During a Joint Finance-Appropriations Committee hearing in January, U of I President C. Scott Green said he still hoped to pursue a purchase, but said the next move was up to Phoenix. But if a deal fell through, Green said Phoenix’s “breakup fees” would cover the U of I’s costs, with $2 million to $3 million left over. “I think we’re well-protected,” Green told lawmakers.
