| Notes |
Education technology giant Blackboard Inc., backed by Providence Equity Partners, is teaming up with textbook-rental provider turned education Jack-of-all trades Chegg Inc. to offer Chegg’s tutoring and study-support services through its learning management software.
The three-year, renewable deal includes a minimum guaranteed payment from Chegg to Blackboard, as well as a revenue-sharing deal for each subscription Chegg sells through the channel, according to Chegg Chairman and Chief Executive Dan Rosensweig. While the guaranteed payment is so small it “would not be noticed in our [profit and loss statement],” Mr. Rosensweig said, the overall deal “could be very lucrative for both parties.”
The arrangement, specific terms of which weren’t disclosed, allows Chegg to get prime positioning in front of millions of students who use Blackboard to complete assignments, and it gives Blackboard an edge with student users who need a little extra help on homework but don’t want to cobble together information from a half-dozen different websites and publishers. |