Direct Investment and US College Buyouts

In 2012 we wrote an article of three possible scenarios if US colleges and universities do not adapt to the new competitive environments where they are operating.  Today we learned that our third prediction has happened.

If the readers read the article critically, they will be amazed to learn the AAUP’s (American Association of University Professors) comments.  Even, under the financial stress, AAUP thinks that financial restructuring efforts such as reducing cost strategy is not good ideas.  The institution is lucky to be bought out.  A couple of years from now, its value may be lower than it is now, and no one will take it over.

If this represents the whole picture of AAUP and the US college culture, then one can conclude that improving operational efficiency is not the top priority in the US.  If that is the case, then one will see of more direct investments and college buyouts in the future.

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