education marketplace

Murdoch buys education tech company Wireless Generation

Rupert Murdoch’s News Corporation took its second step into the education world this evening when it made a deal to buy Wireless Generation, a Brooklyn-based education technology company.

Murdoch took his first step nearly two weeks ago, when he acquired the chancellor of New York City’s public schools, Joel Klein. In an announcement that took most of his staff and top advisors by surprise, Klein told reporters that he was leaving the Department of Education for a job at News Corp., where he will be an executive vice president overseeing investments in digital learning companies.

After Klein resigned, News Corp. officials told The New York Times that they planned to make “seed investments” in entrepreneurial education companies. The acquisition of Wireless Generation may be the first of these investments.

“Wireless Generation is positioned to grow aggressively, and it was the right time in the company’s journey to find a home where it will have access to the resources it needs to fuel that aggressive growth,” said spokeswoman Andrea Reibel in a statement.

Reibel would not comment on when talks began, but said the deal was finalized this evening. For $360 million in cash, News Corp. now owns 90 percent of Wireless Generation, a company with 400 employees.

“When it comes to K through 12 education, we see a $500 billion sector in the U.S. alone that is waiting desperately to be transformed by big breakthroughs that extend the reach of great teaching,” said News Corporation Chairman and CEO, Rupert Murdoch in a statement.

“Wireless Generation is at the forefront of individualized, technology-based learning that is poised to revolutionize public education for a new generation of students,” he said.

Wireless Generation has made its business partly by cobbling together government contracts with school systems. In New York City, it took over development and management of ARIS, the city’s online warehouse of student data, which began under IBM. It also helped write the algorithm for School of One, a program run by the DOE that teaches students math by having them run through a playlist of exercises on their laptops and face-to-face with teachers.

The company is likely to make a bid to build the technological pieces of the national tests that will be tied to the “common core” standards.

Wireless Generation CEO Larry Berger has made a name for himself in the education world in part because of a PowerPoint presentation he delivers explaining the barriers to innovation in the education sector, especially the challenges of breaking the monopolies held by the education publishing companies.

In recent weeks, Klein has mentioned his interest in other online learning ventures such as Israeli-based Time to Know, which sells an online curriculum to about 20 city schools, and School of One.

News Corp.’s full press release follows:

News Corporation today announced it has signed a definitive agreement to acquire 90 percent of Wireless Generation, a privately-held Brooklyn-based education technology company for approximately $360 million in cash.

Upon completion of the transaction, Wireless Generation will become a subsidiary of News Corporation and will be managed by founder and CEO Larry Berger, President and COO Josh Reibel, and Executive Vice President and Chief Product Officer Laurence Holt, who will collectively retain a 10 percent interest.

Established in 2000, Wireless Generation provides mobile and web software, data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instruction. Serving more than 200,000 teachers and three million students across all 50 states, the Company is dedicated to creating innovative tools to help educators teach smarter. It currently has 400 employees.

“When it comes to K through 12 education, we see a $500 billion sector in the U.S. alone that is waiting desperately to be transformed by big breakthroughs that extend the reach of great teaching,” said News Corporation Chairman and CEO, Rupert Murdoch. “Wireless Generation is at the forefront of individualized, technology-based learning that is poised to revolutionize public education for a new generation of students.”

A recognized leader in the movement to personalize the educational experience through the use of data and technology, Wireless Generation also builds large-scale data systems that centralize student data, give educators and parents unprecedented visibility into learning and foster professional communities of educators with social networking tools. The Company is a key partner to New York City’s Department of Education on its Achievement Reporting and Innovation System (ARIS) as well as on the City’s School of One initiative, named by TIME Magazine as one of the Best Inventions of 2009.

“We’re delighted to be joining a company that has a long history of growing entrepreneurial, innovative businesses,” said Larry Berger, CEO of Wireless Generation. “Rupert believes in the power of digital platforms to reach more people with better information, more swiftly than ever and he understands the transformative effect technology can bring to the process of learning.”

News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of September 30, 2010 of approximately US$56 billion and total annual revenues of approximately US$33 billion. News Corporation is a diversified global media company with operations in six industry segments: cable network programming; filmed entertainment; television; direct broadcast satellite television; publishing; and other. The activities of News

Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America.

About Wireless Generation

Wireless Generation creates innovative tools, systems and services that help educators teach smarter. With its solutions, educators can feasibly apply research-based, proven practices such as frequent progress monitoring and needs diagnosis, data-informed decision-making, differentiated instruction and professional collaborations across classrooms, grades, schools. The company has helped educators to address and solve some of the most pressing challenges in teaching and learning. Wireless Generation currently serves more than 200,000 educators and three million students.

Newsroom

To promote virtual schools, Betsy DeVos cites a graduate who’s far from the norm

U.S. Education Secretary Betsy DeVos spoke to the National Alliance for Public Charter Schools in June.

If Betsy Devos is paying any attention to unfolding critiques of virtual charter schools, she didn’t let it show last week when she spoke to free-market policy advocates in Spokane, Washington.

Just days after Politico published a scathing story about virtual charters’ track record in Pennsylvania, DeVos, the U.S. education secretary, was touting their successes at the Washington Policy Center’s annual dinner.

DeVos’s speech was largely identical in its main points to one she gave at Harvard University last month. But she customized the stories of students who struggled in traditional schools with local examples, and in doing so provided an especially clear example of why she believes in virtual schools.

From the speech:

I also think of Sandeep Thomas. Sandeep grew up impoverished in Bangalore, India and experienced terrible trauma in his youth. He was adopted by a loving couple from New Jersey, but continued to suffer from the unspeakable horrors he witnessed in his early years. He was not able to focus in school, and it took him hours to complete even the simplest assignment.

This changed when his family moved to Washington, where Sandeep was able to enroll in a virtual public school. This option gave him the flexibility to learn in the quiet of his own home and pursue his learning at a pace that was right for him. He ended up graduating high school with a 3.7 GPA, along with having earned well over a year of college credit. Today, he’s working in finance and he is a vocal advocate for expanding options that allow students like him a chance to succeed.

But Thomas — who spoke at a conference of a group DeVos used to chair, Advocates for Children, in 2013 as part of ongoing work lobbying for virtual charters — is hardly representative of online school students.

In Pennsylvania, Politico reported last week, 30,000 students are enrolled in virtual charters with an average 48 percent graduation rate. In Indiana, an online charter school that had gotten a stunning six straight F grades from the state — one of just three schools in that positionis closing. And an Education Week investigation into Colorado’s largest virtual charter school found that not even a quarter of the 4,000 students even log on to do work every day.

The fact that in many states with online charters, large numbers of often needy students have enrolled without advancing has not held DeVos back from supporting the model. (A 2015 study found that students who enrolled in virtual charters in Michigan, Illinois, and Wisconsin did just as well as similar students who stayed in brick-and-mortar schools.) In fact, she appeared to ignore their track records during the confirmation process in January, citing graduation rates provided by a leading charter operator that were far higher — nearly 40 points in one case — than the rates recorded by the schools’ states.

She has long backed the schools, and her former organization has close ties to major virtual school operators, including K12, the one that generated the inflated graduation numbers. In her first week as education secretary, DeVos said, “I expect there will be more virtual schools.”

expansion plans

Here are the next districts where New York City will start offering preschool for 3-year-olds

PHOTO: Christina Veiga
Schools Chancellor Carmen Fariña, left, and Mayor Bill de Blasio, center, visited a "Mommy and Me" class in District 27 in Queens, where the city is set to expand 3-K For All.

New York City officials on Tuesday announced which school districts are next in line for free pre-K for 3-year-olds, identifying East Harlem and the eastern neighborhoods of Queens for expansion of the program.

Building on its popular universal pre-K program for 4-year-olds, the city this year began serving even younger students with “3-K For All” in two high-needs school districts. Mayor Bill de Blasio has said he wants to make 3-K available to every family who wants it by 2021.

“Our education system all over the country had it backwards for too long,” de Blasio said at a press conference. “We are recognizing we have to reach kids younger and more deeply if we’re going to be able to give them the foundation they need.”

But making preschool available to all of the city’s 3-year-olds will require an infusion of $700 million from the state or federal governments. In the meantime, de Blasio said the city can afford to expand to eight districts, at a cost of $180 million of city money a year.

Funding isn’t the only obstacle the city faces to make 3-K available universally. De Blasio warned that finding the room for an estimated 60,000 students will be a challenge. Space constraints were a major factor in picking the next districts for expansion, he said.

“I have to tell you, this will take a lot of work,” he said, calling it “even harder” than the breakneck rollout of pre-K for all 4-year-olds. “We’re building something brand new.”

De Blasio, a Democrat who is running for re-election in November, has made expansion of early childhood education a cornerstone of his administration. The city kicked off its efforts this September in District 7 in the South Bronx, and District 23 in Brownsville, Brooklyn. More than 2,000 families applied for those seats, and 84 percent of those living in the pilot districts got an offer for enrollment, according to city figures.

According to the timeline released Thursday, the rollout will continue next school year in District 4 in Manhattan, which includes East Harlem; and District 27 in Queens, which includes Broad Channel, Howard Beach, Ozone Park and Rockaways.

By the 2019 – 2020 school year, the city plans to launch 3-K in the Bronx’s District 9, which includes the Grand Concourse, Highbridge and Morrisania neighborhoods; and District 31, which spans all of Staten Island.

The 2020 – 2021 school year would see the addition of District 19 in Brooklyn, which includes East New York; and District 29 in Queens, which includes Cambria Heights, Hollis, Laurelton, Queens Village, Springfield Gardens and St. Albans.

With all those districts up and running, the city expects to serve 15,000 students.

Admission to the city’s pre-K programs is determined by lottery. Families don’t have to live in the district where 3-K is being offered to apply for a seat, though preference will be given to students who do. With every expansion, the city expects it will take two years for each district to have enough seats for every district family who wants one.