The NYTimes reported on 6/23 that Providence Equity is close to a deal to acquire Blackboard (market capitalization about $1.4 billion).
First, I think that this deal makes sense for Providence Equity. I believe that the value of Blackboard could significantly grow in the next 5 years. Further, I think that a buyout firm maybe positioned to make the necessary investments over the next 5 years to position Blackboard for a sale to the large software, media or publishing company where I think Blackboard will eventually land.
Joshua Kim, Inside Higher Ed
