- Investors are cheering a News Corp. (NWS +7.8%, NWSA +7.4%) decision to bail out of the education business, a pricey $1B bet that didn't pay off.
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Earnings yesterday featured a $371M writedown on Amplify, the digital-education unit headed by former New York City schools chancellor Joel Klein.
- News Corp. is in "active conversations with an outside investor" about a sale that are in the "final phase," according to a company memo.
- The education segment made up a little over 1% of total revenues, but was seen as a possible growth engine amid slowdowns elsewhere (News and Information Services revenue declined 10%).
- Earlier this summer, Amplify began winding down sales of its custom tablet device after very light uptake, but said it would continue to support existing customers.
- While Digital Education revenues were up 33% to $24M, the segment's EBITDA was -$24M.
- Previously: News Corp. beats, but takes $371M writedown on education (Aug. 12 2015)