The 2U and edX Merger Examined

Two articles published on the 2U and edX merger, 2U and edX Merger Benefits Both, by Emma Whitford, and 2U, edX to Combine to Create Online Learning Giant by Doug Lederman, both in Inside Higher Ed, highlight the competitive necessity for mergers and acquisitions between online education companies. Not-for-profit organizations and publicly traded companies usually considered separate entities are now combining efforts to make the most impact while going toe-to-toe with competitors.

Whitford points out that the merger of 2U, a for-profit online program management company, and edX, a nonprofit online course provider, creates competition with Coursera’s direct-to-consumer business model, which has nearly twice as many learners as edX and recently valued at $7 billion. It’s an interesting switch for edX, which once marketed itself as an alternative to for-profit companies like Coursera and is now rolled into 2U, one of the largest publicly traded education companies.

The objective of the 2U and edX merger is to create an inclusive learning and education entity that, according to Lederman, will reach 50 million learners serving the top universities in the U.S. and abroad. With a price tag of $800 million, 2U is acquiring the online course assets of edX, originally created a decade ago by Harvard University and MIT. As reported in a 2U investor slide deck, edX is considered one of the top 10 websites in the space, with 39 million registered users and a visitor marketplace of 120 million.

A recent press release indicates that the merger will also advance next-generation learning experience platforms while addressing educational equity as a core goal. By combining efforts, 2U and edX are set up to compete with the likes of Coursera while becoming a major player in meeting the growing worldwide demand for online education.

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