Bloomberg Businessweek

Kaplan Sells Its College But Keeps Its Profits

• It will still manage the online school for buyer Purdue University

• “We thought it would be a bad idea for us to build this on our own”

How do you turn a for-profit college into a nonprofit? Partner with a public university—and pay $50 million for the privilege. That’s basically what happened on April 27 in a deal between for-profit higher-education chain Kaplan and Purdue University, the public Indiana college.

The arrangement may help Kaplan parent Graham Holdings Co.

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