Idaho Shuts Down $685M Deal with University of Phoenix: What This Means for Students and the Future

The plan to merge the University of Idaho with the University of Phoenix has officially come to a halt. After two years of discussions that started quietly in Moscow, the deal has failed to win support from Idaho’s political leaders.

In a joint statement, both universities confirmed they would stop the merger talks. University of Idaho President C. Scott Green noted that, while he valued the University of Phoenix, the costs of continuing discussions were too high. He added that the university learned a lot from the process, which they might use in future initiatives.

The merger was first announced in June 2023, catching many state leaders off guard. Green proposed the deal as a way to improve educational access and support for students. However, he faced considerable pushback. Many lawmakers were skeptical about the acquisition. They showed their discontent with legislation that would complicate such purchases in the future without prior notice to lawmakers.

Despite ongoing lobbying from University of Phoenix, their leaders did not win over Idaho’s lawmakers. In fact, a bill passed in 2024 that stipulates state-funded institutions must notify officials and local media of purchases over $25 million. This hindered Green’s attempt to outline the deal’s benefits, and the matter was largely ignored during the 2025 legislative session.

Now, both parties need to finalize the financial details of their split. Reports indicated that the University of Phoenix will reimburse the University of Idaho for expenses incurred during the negotiations, totaling around $12.24 million. A significant portion of these costs went to the international law firm Hogan Lovells, where Green had previously worked. Some state lawmakers raised concerns about this choice, questioning the connection.

The failed merger reflects challenges faced by the University of Phoenix, which has been under scrutiny in recent years. In 2019, the university agreed to pay $191 million due to misleading advertisements related to job placements. This history has added to the concerns about its reputation, especially as it once enrolled around 470,000 students but has since experienced a significant drop in numbers.

As education landscapes change, this event underscores the complexities involved in higher education mergers. Key factors like political support, institutional reputation, and financial implications become crucial in determining the success or failure of such partnerships.



Source link