The University of Idaho has opted not to move forward with its acquisition of the University of Phoenix, a proposed $685 million deal that faced scrutiny and criticism. The decision to halt discussions stems from concerns raised by lawmakers over the viability and potential risks associated with acquiring a for-profit institution. Idaho had anticipated enhancing its online offerings and generating revenue through the acquisition, but ultimately found the process too costly and distracting. Idaho will receive termination fees from the University of Phoenix to cover due diligence costs as the deal concludes.
Although we continue to see great value in University of Phoenix, it has become cost prohibitive, and potentially distracting to our other work, to continue conversations.
The $685 million deal was criticized by lawmakers and others in Idaho who worried about risks of acquiring a large for-profit university that faced significant scrutiny from regulators.
The deal would have helped Idaho expand its online offerings, generate revenue and broaden its reach, university officials have said.
The final dissolution of the slow-moving deal was largely expected, as the two sides faced a June 10 deadline to rework the agreement.
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