Apollo Education to Explore Strategic Alternatives
January 11 2016 - 7:30AM
Dow Jones News
For-profit education company Apollo Education Group Inc. said
Monday it would explore strategic alternatives, as the government
places greater scrutiny on for-profit colleges.
The company said its board was currently in discussions that
could lead to a change of control of the company.
Apollo shares, which have fallen 42% in the last three months,
jumped 13% to $7.42 on the news in premarket trading.
Apollo, which runs schools including the University of Phoenix,
has seen its enrollment numbers pressured as stricter regulation
has reduced for-profit colleges' share of U.S. financial aid for
students that such schools depend on for most of their revenue. The
company has moved to shut some of its locations and trim jobs,
while also expanding abroad.
The Wall Street Journal reported in October that the Justice
Department and the Department of Education were coordinating on
investigations of the University of Phoenix. The Defense Department
barred Apollo from recruiting on military bases and placed it on
probation for alleged recruiting violations.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 11, 2016 08:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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