Quote:Financially struggling 2U, one of the largest online course providers, has warned of “substantial doubt” it can continue in business, creating uncertainty for the hundreds of colleges and universities that use its services. [...]

The warning, in a quarterly filing on Monday, added more tumult to the already-uncertain landscape for online program management firms, or OPMs.
At the end of last year, 2U had more than $900 million in debt. According to the earnings report, if 2U cannot raise capital or amend or refinance its loan, which the company has already begun to do, there is “substantial doubt about its ability to continue as a going concern.” [...]

2U works with more than 250 higher ed institutions and partners. Inside Higher Ed reached out to a dozen that work with 2U, most of which did not respond to requests for comment. Representatives from Pepperdine University and the University of California, Berkeley, declined to comment. [...]

He pointed toward Academic Partnerships and Grand Canyon Education, both growing in the space, as potential buyers for 2U. Others have suggested a private equity firm, as those firms are used to acquiring debt. [...]

2U is one of the largest in the space, launching in 2008 and hitting a peak with the acquisition of industry giant edX in 2021. [...]

...a potential delisting of 2U on the NASDAQ stock exchange could be a catalyst for universities to cut ties. If a company’s stock price is below $1 for 30 days, the company receives a notice of delisting. It then has 180 days to raise the stock price, which could be as simple as a reverse stock split, which would boost the price. As of Feb. 13, 2U’s stock price was 57 cents per share.