Apollo Group
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| Apollo Group Inc. | |
|---|---|
| Type | Public |
| Founded | 1973 |
| Headquarters | Phoenix, Arizona |
| Key people | John Sperling ,Founder |
| Industry | For-Profit Education |
| Revenue | $2.723 billion(2007) |
| Employees | 12,000+ |
| Website | www.apollogrp.edu |
Apollo Group, Inc. NASDAQ: APOL is an S&P 500 corporation based in the South Phoenix of Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, provides higher education to working adults. The company offers associate, bachelor, master, and doctoral degrees in business, criminal justice, general studies, health administration, and information technology. It provides program development services, which include degree program design, curriculum development, market research, student recruitment, accounting, and administrative services to regionally accredited private colleges and universities. Apollo Group also offers its educational programs worldwide through its computerized educational delivery system. In addition, it provides other services, which include recruiting and training faculty, monitoring academic quality, and providing support services. Further, the company offers professional education programs, such as continuing education for teachers; custom training; environmental training; and other programs leading to certification in the areas of business, technology, and nursing. The company owns and operates four higher-learning institutions: the University of Phoenix, Western International University, Axia College (of the University of Phoenix), the College for Financial Planning, and the Institute for Professional Development. As of November 2005, the combined enrollment of the four was approximately 315,350 students. Of these, nearly 90% attend the University of Phoenix, which Apollo describes as "the nation’s largest regionally accredited private university" [1].
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[edit] History
Apollo Group, Inc. was founded in 1973 in response to a gradual shift in higher education demographics from a student population dominated by youth to one in which approximately half the students are adults and over 80 percent of whom work full-time.[citation needed] Apollo's founder, John Sperling, believed that employment with a single employer would be replaced by lifelong learning and employment with a variety of employers.
Corporate revenues for the year ending August 31, 2005 were $2.251 billion[1]. As of August 31, 2005, Apollo Group offers its programs and services at 90 campuses in 39 states, Puerto Rico, Alberta, and British Columbia, as well as the Netherlands.
[edit] Joint venture with Carlyle Group
According to a news release October 22, 2007, Apollo Group and the Carlyle Group will form a $1 billion joint venture to invest in international education services which will be named Apollo Global. Apollo Group has committed approximately $801 million and will own 80.1% of the new company and Carlyle has committed approximately $199 million and will own 19.9%. Apollo Global will replace the existing Apollo International, a separate company in which Apollo had invested.[2][3]
[edit] Controversy
The Apollo Group is the target of a securities-related lawsuit [4] alleging that the group disseminated false financial statements to stock purchasers. In January of 2008, Apollo was found guilty of fraud for misleading investors by not disclosing a Department of Education report harshly critical of University of Phoenix's recruitment practices. The jury awarded the plaintiffs $280 million.[5] The Nasdaq Listing and Hearings Review Council notified Apollo Group of possible delisting of its shares, and a New York law firm filed a class action lawsuit alleging that Apollo made false and misleading statements and omitted material information concerning the backdating of options granted by the company.[6] In the midst of the Nasdaq probe, Apollo CFO Kenda Gonzalez and Controller Daniel E. Bachus resigned.[6]
[edit] References
- ^ Apollo Group 2005 annual report
- ^ Apollo Group and the Carlyle Group Form $1 Billion Joint Venture to Make Investments in the International Education Services Sector, Apollo website, October 27, 2007
- ^ Apollo Goes Global, Inside Higher Education, October 22, 2007, Doug Lederman
- ^ Judge Upholds Securities Suit Against Apollo Group, The Business Journal of Phoenix, October 20, 2005,
- ^ Jury Finds U of Phoenix Parent Company Liable for $280 Million Chronicle of Higher Education January 16, 2008
- ^ a b Apollo controller resigns on heels of CFO departure, The Business Journal of Phoenix, by Angela Gonzales, November 9, 2006
[edit] External links
[edit] News articles
- University of Phoenix fined record $9.8 million article on the Arizona Daily Star (of Pulitzer, Inc.)
- Trouble Grows for University Built on Profits, NY Times, February 11, 2007 by Sam Dillon
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