University of Idaho, University of Phoenix call off $550 million acquisition

Angela Palermo, The Idaho Statesman on Jun 3, 2025

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BOISE, Idaho — Two years ago, the University of Idaho shocked students, faculty and alumni when it announced that it planned to create a nonprofit to acquire the University of Phoenix, a for-profit, online school with a checkered past.

Now, the deal is dead.

The universities have agreed to end negotiations for the $550 million purchase asset agreement, according to a news release Tuesday from the University of Phoenix. The deal would have had Four Three Education, a nonprofit affiliated with the U of I, buy Phoenix from its hedge fund owner, Apollo Global Management.

The U of I plans to seek formal approval to terminate the agreement at a special Idaho State Board of Education meeting scheduled Thursday.

“While we have decided not to move forward, we remain appreciative of (U of I) President Scott Green, the leadership of the University of Idaho, and the many elected officials in Idaho who supported this process,” University of Phoenix President Chris Lynne said in the release.

The University of Phoenix said it has “actively explored” other options since the State Board in June 2024 extended the deadline to finalize the deal to mid-June 2025.

Phoenix declined to answer an Idaho Statesman question Tuesday about what other options the school has explored.

As part the State Board’s amendment, the U of I agreed to drop exclusivity terms, allowing Phoenix to consider other offers. In exchange, Phoenix agreed to pay Idaho $5 million, and even more money if Phoenix sells to another entity, the Idaho Statesman previously reported.

A spokesperson for the State Board did not immediately respond to a request for comment Tuesday.

Jodi Walker , a spokesperson for the U of I, told the Idaho Statesman by email in April that the land-grant institution had already received $5 million from Phoenix in reimbursement. Less than $12 million in reimbursement was outstanding, she said.

“Under the revised agreement, if the University of Phoenix did pursue another transaction, the University of Idaho would benefit from and receive a substantial fee, should that other transaction materialize,” Walker said.

The U of I has spent as much as $17 million attempting to complete the acquisition, according to Walker.

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