education is hot? 2u is gone, chegg is on its way, and coursera's valuation isn't getting me hot and bothered. going on the watchlist, but not sure what kind of catalyst it's going to take for this category. a lot of "substitute" "education" from all kinds of ai tools.
Reasonable take. I suspect education is going to bifurcate between high end and low end. At the luxury end, tutoring should be strong for a while. At the mass market end, there will be a lot of automation. Chegg was about cheating, not learning. Coursera is more than 2x the price to sales multiples of Nerdy. Also, the dollars for tutoring after integrating with the schools come from government slush funds.
Sylvan was acquired by FRG in 2021 for $81 million, it was sold by FRG in February for $181 million. I got the information following RILY, my biggest drawdown of the year.
Appreciate the response! Do you mind sharing where you found it? I don't follow RILY but I know they've come under some distress so maybe they sold it for a multiple less than what they should deserve?
It's a press release through the Bloomberg Terminal dated 2/19/2024 by Ryan Gould. The sale price of Sylvan was $185 million. Not a distressed valuation at all as RILY predicted it would be $168 million based on 12x EBTIDA.
Dive into the proxy and execute comp: Cohen salary is $1 sine he started and his RSUs payout starting in double digit targets.
Happy to help LOL. I was hoping that as I build up a content library, people would find me
This name came up on my screener! Was about to start some DD thanks for a head start!
education is hot? 2u is gone, chegg is on its way, and coursera's valuation isn't getting me hot and bothered. going on the watchlist, but not sure what kind of catalyst it's going to take for this category. a lot of "substitute" "education" from all kinds of ai tools.
Reasonable take. I suspect education is going to bifurcate between high end and low end. At the luxury end, tutoring should be strong for a while. At the mass market end, there will be a lot of automation. Chegg was about cheating, not learning. Coursera is more than 2x the price to sales multiples of Nerdy. Also, the dollars for tutoring after integrating with the schools come from government slush funds.
Where did you see Sylvan was acquired for 181million? Did you mean they were acquired by FRG in 2023 for 81million?
Sylvan was acquired by FRG in 2021 for $81 million, it was sold by FRG in February for $181 million. I got the information following RILY, my biggest drawdown of the year.
Appreciate the response! Do you mind sharing where you found it? I don't follow RILY but I know they've come under some distress so maybe they sold it for a multiple less than what they should deserve?
It's a press release through the Bloomberg Terminal dated 2/19/2024 by Ryan Gould. The sale price of Sylvan was $185 million. Not a distressed valuation at all as RILY predicted it would be $168 million based on 12x EBTIDA.
Awesome! Thanks for the sleuthing!